Alison Padfield QC & Diarmuid Laffan analyse the obligations of SIPP providers
In a landmark decision on the regulatory obligations of self-invested personal pension (SIPP) providers, the High Court has approved a decision of the Financial Ombudsman Service (FOS) requiring a SIPP provider to compensate its client for an unorthodox investment which turned out to be a scam. This was notwithstanding the fact that the SIPP provider, Berkeley Burke SIPP Administration Ltd (Berkeley Burke), acted for the client, a Mr Charlton, on an execution-only basis and, hence, that Berkeley Burke was under no obligation to assess and advise him on the ‘suitability’ of the investment in light of his personal circumstances.
In R (Berkeley Burke SIPP Administration Ltd) v Financial Ombudsman Service Ltd [2018] EWHC 2878, [2018] All ER (D) 07 (Nov) the High Court rejected Berkeley Burke’s claim for judicial review of the decision of the FOS in which it concluded
