SIPP operator enters administration after member complaints

Rowanmoor operates approximately 4,800 pensions, with assets under administration of £1.4bn.

The firm entered administration due to a number of complaints about historic high-risk non-standard assets and for not carrying out adequate due diligence before accepting these assets into customers’ SIPPs. The Financial Ombudsman Service upheld a complaint which was representative of most of the complaints received.

Rowanmoor sought professional advice about the liabilities arising from existing and potential complaints, and its directors determined that the company was insolvent and should be placed into administration.

Rowanmoor remains an FCA-authorised firm and will continue to operate existing pensions whilst the administrators look for a new operator.

Rowanmoor has appointed Adam Stephens and Chris Allen of Evelyn Partners as joint administrators, who said: “We are in discussions with a potential purchaser and we hope to proceed quickly, with the intention of completing a sale within a short timeframe. It is anticipated that any such sale will involve the transfer of responsibility to operate and managed SIPPs and FPTs.”

In a statement on its website, the FCA said it is in regular contact with the administrators who are looking at the options available, including the transfer of Rowanmoor’s clients to another FCA regulated SIPP operator.

If this is not possible, the administrators will look to pursue other options aimed at transferring SIPPs or returning pension assets back to clients.