The FSCS has today (20 March) declared failed white label SIPP provider Gaudi Regulated Services Limited (FRN: 488015) as in default.
A declaration of default means that Gaudi is unable to meet compensation claims against the business.
The FSCS, the industry funded consumer safety net, will now be able to pay up to £85,000 per successful claim.
The FSCS said that claims against the firms related to pensions business.
Gaudi (FRN: 488015) provided or administered ‘white label’ SIPPs which could be branded and modified under another firm's name.
Gaudi went into administration on 25 April 2023 when the directors appointed Sean Bucknall and Andrew Watling of Quantuma Advisory Ltd as Joint Administrators.
Gaudi’s book was sold to Platform One Ltd on 25 April 2023, shortly before Gaudi entered Administration.
The FSCS said it was open to customer claims against Gaudi and is currently investigating the eligibility of all claims.
The FSCS called the probe into Gaudi a "complex investigation" because there were a number of business partners who used Gaudi's white labelled SIPPs.
The FSCS has informed claimants who held the GRSL EasySIPP that it declared Gaudi Regulated Services Limited in default today (20 March). The FSCS will continue to assess the GRSL EasySIPP claims on an individual basis and pay compensation to customers with a valid claim.
The FSCS said its investigation suggested that some customers who brought a complaint against Gaudi may have been given advice to open a SIPP with the fiirm.
The FCA said directors of Salisbury-based Gaudi decided it was insolvent due to liabilities from outstanding Financial Ombudsman Service complaints. Gaudi was hit with several upheld final decisions from the Financial Ombudsman Service on some of the investments it allowed within its SIPPs.
• This is a developing story. Please check back for updates.