FSCS receives 644 claims against failed SIPP provider

The Financial Services Compensation Scheme, the industry consumer safety net, has so far received 644 claims against failed SIPP provider Forthplus Pensions Limited, it reported today.

Edinburgh-based Forthplus (FRN: 653170) was formerly called Athena Pensions Limited and was also known as Helium Miracle 119 Limited.

The FSCS declared the firm, which had £500m in AUM at one point, in default this week, opening the door to ex-clients to seek up to £85,000 per successful claim.

The compensation body is funded by an industry levy and can award compensation to consumers whose providers or advisers have failed, where sufficient funds for compensation are not available.

The FSCS said that it has so far received 644 claims in relation to pensions and SIPP advice connected to Forthplus but there is no indication so far that any were related to BSPS claims.

One claim has now been upheld, triggering the default declaration. 

Forthplus Pensions Ltd failed and was placed into administration in 2021. It closed to new business at the start of September 2021, before appointing an administrator in October 2021. The firm was the administrator of The Forthplus SIPP.

Forthplus had clients both inside and outside the UK, the FSCS said.

In June 2022 SIPP provider iPensions Group completed the migration of Forthplus SIPP customers following its acquisition of the business assets of the Edinburgh business. The deal involved integrating £500m of Forthplus assets under administration. iPensions acquired the business assets of the closed SIPP firm in December 2021.

iPensions acquired close to 2,500 customers from Forthplus. Required Forthplus staff in Manchester and Edinburgh were also retained by iPensions.

The FSCS has now concluded its investigation into Forthplus which it said was complex and time consuming.