Unity SIPP, part of the £1.2bn failed PSG SIPP (PSGS) business, has been sold to Pathlines Pensions UK Limited, formerly London & Colonial (LCS).

PSGS went into administration on 25 October with Evelyn Partners appointed as administrators. 

PSGS administered about 5,500 SIPPs with a total of £1.2bn in assets under management.

The latest deal, for an undisclosed sum, marks a significant step in the winding up of PSG.

All SIPPs administered by PSG SIPP, except Unity SIPP, were transferred to SIPP firm Alltrust Services Limited (Alltrust). 

Once LCS has completed its purchase of Unity SIPP, it plans to write to impacted customers to explain what is happening to their pension funds, as will Evelyn Partners, the FCA said in an update. 

The deals mean that PSG SIPP customers, including Unity SIPP customers, can continue to contribute, withdraw and make investment decisions.

Pathlines will now provide all administrative services to Unity SIPP customers. Evelyn Partners and Pathlines will contact all Unity SIPP customers to provide more information on the transaction which was completed yesterday (9 January).

Unity SIPP customers do not need to take any action.

The FCA has previously warned customers of PSGS to be wary of approaches by scam firms.

Adam Stephens and Chris Allen, joint administrators at Evelyn, said: “We are pleased to have concluded the sale of the Unity SIPP scheme to Pathlines Pensions, which will ensure continuity of service to the clients within the Unity SIPP.” 

PSGS was owned by collapsed London-based IFA Donre Advisory Limited (FRN 513993) - which previously traded as Basi & Basi Financial Planning Limited. Donre went into liquidation in July two months after the FCA restricted its business activities. The FSCS has also declared the firm as under investigation.

PSG SIPP Ltd is also under a separate investigation.