The Financial Services Compensation Scheme (FSCS) is now open to claims against Berkeley Burke SIPP Administration Limited (BBSAL).

The SIPP operator went into administration yesterday.
 
FSCS says it is working closely with the firm's administrators RSM and is investigating the practices of BBSAL.

The organisation revealed it was seeking specifically “to establish what levels of due diligence were carried out by the firm, prior to permitting customers to make specific investments under their pensions”.

A statement from the body read: “Although FSCS is accepting claims against BBSAL, claims will not immediately be passed to our claims processing teams for assessment.

“Firstly, we need to establish whether there are protected claims against BBSAL.

“For this to happen we need to be clear that BBSAL owes a civil liability to customers.
 
“We're aware that many BBSAL customers were advised by independent financial advisers (IFAs) to transfer existing pensions into a BBSAL SIPP.

“Following the pension transfer, customers had their pension funds placed in high-risk, non-standard investments, many of which have become illiquid.

“FSCS has already assessed and paid a number of claims made against IFAs already declared in default by us, in relation to advice customers received to transfer their pension into a BBSAL SIPP.”
 
All customers who think they may have a claim related to BBSAL should in the first instance visit the BBSAL webpage on the FSCS website at https://www.fscs.org.uk/failed-firms/berkeley-burke/ even if a claim has been made against an adviser already.
 
In January 2018, FSCS declared three SIPP operators, Brooklands Trustees Ltd, Stadia Trustees Ltd and Montpelier Pension Administration Services Ltd in default.

Since then FSCS has paid claims against these and other SIPP operators.