FTAdviser has spoken with advisers and clients who have complained to Hartley Pensions and their administrators UHY Hacker Young after having difficulties moving assets held within their Hartley Sipps.
One adviser said he is battling to get his vulnerable clients’ transfer completed as soon as possible but to no avail.
He has complained to his MP, as well as submitting a formal complaint with Hartley and its administrators, but he told FTAdviser months have passed without his clients being able to get their money.
But even if clients are eventually able to get their funds transferred, they will be subject to an administration fee upon exit.
Financial advisers need to do their due diligence to avoid their clients being with the next Hartleys.Nathan Bridgeman, Seabridge Ssas
FTAdviser understands that part of the administration process is to reconcile all the assets that Hartley administers on behalf of clients, which is about £1.2bn, to make sure the assets are securely held by the trustee companies.
The administrators said this is a time-consuming process, but expect to have completed this by the end of this month (April).
Alongside this, UHY Hacker Young is preparing an application to court to ask it to ratify a charge that the administrators will make against the assets that clients hold within their Sipps - this would mean that clients can start transferring their money, FTAdviser understands.
But there is no definitive timescale set for when people can get their money.
FTAdviser has seen a letter to clients saying that the administrators are proposing to value each client's holding as at March 31 and use this value to calculate the charge.
Therefore, for a limited period, the administrators will be restricting drawdowns to £1,000 per month.
'Unacceptable'
However, Nathan Bridgeman, director at provider Seabridge Ssas, said this was “unacceptable” from the administrator.
He added: “It sets a very dangerous precedent. Financial advisers need to do their due diligence to avoid their clients being with the next Hartleys, but before we get to that the FCA and TPR surely needs to step in here.”
FTAdviser understands that whether or not administrators can restrict how much goes out of a Sipp would depend on the scheme rule and terms and conditions governing each individual Sipp.
However, in all circumstances, firms must treat customers fairly in line with the FCA's Principle 6. The FCA's understanding is that the restrictions placed on withdrawals from Hartley have now been reversed.
