Are you facing a pension problem? Reach out to Pensions Doctor at [email protected]. Pensions Doctor columns are published weekly.
Dear Becky,
My wife’s pension with Hartley Pensions was placed in administration in July 2022, and I’m still unsure about the circumstances surrounding it. I believe many others are affected by this issue.
During this period, I have received peculiar emails from a Hartley director, the receivers UHY Hacker Young, and the independent financial adviser (IFA) who set up the pension for me.
I can provide these emails upon request.
Since the fund has been in administration, all transfers and movements have been suspended. It is expected that funds will become available for transfer in September.
I’m concerned about whether my wife will be compensated for the loss of growth, as her funds are not performing well compared to my pension. She would have moved them in late 2022, but was unable to do so.
The IFA she used charged a 1% fee on contributions to ensure that the investments within the pension remain suitable without needing changes.
Is there any possibility of recovering these losses from the Financial Conduct Authority or the IFA?
We are eager to move past this unfortunate situation, and any advice would be greatly appreciated.
Sincerely, Rob
Dear Rob,
I’m sorry to hear about your wife’s involvement in this administration along with numerous other Sipp customers of Hartley Pensions.
I reached out to UHY Hacker Young, the administrators of Hartley Pensions, and they informed me that clients can still withdraw money from their pensions for living expenses or purchases. They can also trade investments and request their pension commencement lump sum.
However, there are restrictions on making further contributions and transferring out of client Sipps. Transfers will be allowed once the exit and administration charge is approved by the courts to ensure fairness for all clients. Individual transfers may be considered on a case-by-case basis if the client is deemed vulnerable.
When your wife eventually transfers her pension, she will encounter an administration fee, which is currently pending court ratification. After the fees are agreed upon, she can proceed with the transfer.
The administrators anticipate completing this process by November, and the first transfers are expected to occur early next year, significantly delayed from the original timeline. Once the fees and transfers out are permitted again, you will have a better understanding of the amount lost due to performance and fees. At that point, you can decide if you want to pursue a compensation claim.
Your wife’s situation is not unique, as many other individuals are seeking information, reassurance, and compensation. Some customers have even formed a campaign group, primarily focusing on the fees being charged rather than poor investment performance.
It’s worth noting that in May of this year, the Financial Ombudsman Service ruled against Hartley Pensions in a complaint regarding excessive fees for Sipp administration. Therefore, there is precedent for addressing this specific issue. However, not all customers are subject to the same fees, as some were acquired when Hartley purchased other pension providers, and their previous provider’s fees carried over.
In terms of seeking compensation, your wife’s case demonstrates the complexity that arises when multiple parties are involved, and different organizations can potentially provide redress. You have two potentially different causes for complaint: Hartley Pensions and your IFA.
Typically, complaints must be initially addressed with the firm involved before being referred to other organizations. In this case, if you wish to complain about the investments your wife is stuck with, her inability to transfer out as desired, and potentially the charged fees, you should direct your complaint to the administrators, allowing them eight weeks to respond.
You can also file a complaint with your IFA regarding unsuitable advice and request a waiver of the 1% fee for the past year.
If you choose to complain to Hartley, as it is in administration, any redress would need to come from the Financial Services Compensation Scheme (FSCS). The FSCS is currently investigating Hartley Pensions and working closely with the joint administrators to determine if any protected claims warrant compensation. The maximum compensation provided by the FSCS is £85,000.
Lastly, it’s important to mention that customers of Hartley Pensions may be at risk of scams. The Financial Conduct Authority has issued warnings about cold calls from individuals claiming to represent Hartley Pensions. These calls should be ignored and reported to [email protected], or by calling 0800 063 9113 for UK callers or +44 20 3282 8151 for international callers.
You can find updates on the administration’s status and its impact on customers on the Hartley Pensions website.
Remember to email your questions to [email protected]
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