Failed SIPP operator Intelligent Money has been declared in default today by the Financial Services Compensation Scheme, opening the door to ex-clients with valid claims to receive compensation.

A declaration of default normally means the firm is unable to pay outstanding claims so the industry-funded FSCS will step in to pay compensation to ex-clients with valid claims.

The company, a substantial provider of SIPPs and other products, was set up in 2002 and had about £1bn in assets under management and about 20,000 clients when it collapsed in May.

The FSCS told Financial Planning Today it had so far received 179 SIPP-related claims against the firm.

Intelligent Money Ltd (FRN: 219473) went into administration in May following an upheld complaint about investments it allowed within its SIPPs. The firm was placed into liquidation on 31 October with Interpath Advisory handling the administration.

Intelligent Money had over 27 trading names including Cash Retirement Account, IM Optimum SIPP, Qualifying Workplace Pension, The Wise SIPP, VisionWealth Retirement Account, VisionWealth SIPP, Beaufort Financial Personal Pension, Beaufort Financial SIPP, GHC Foundation SIPP, iSIPP, iPension, and Pennine Wealth Solutions Personal Pension Plus.

The FSCS said its investigation into the firm is “ongoing” and that during the initial stages of the investigation it was able to obtain key documents relating to a specific cohort of claims (involving Greyfriars P6 portfolios). 

The FSCS said it was satisfied that certain customers in this specific cohort have valid claims against the firm. As a result, Intelligent Money was declared ‘in default’ under its rules.

Further investigations into other claims are continuing.

After receiving an upheld final decision from the Financial Ombudsman Service on the investments, the firm’s directors decided earlier this year that the financial liabilities associated with this and similar complaints made the ongoing operation of the company unviable.

Intelligent Money had been subject to an FCA asset restriction requirement since February.

Following the appointment of the Joint Administrators, Intelligent Money’s book (assets and customers) was sold to Quai Administration Services Limited. Quai Investment Services Limited (Quai’s regulated subsidiary) is now the operator of Intelligent Money’s SIPPs and the ISA Plan Manager.

Additionally, Intelligent Money’s 10,500 qualifying workplace pension scheme (‘QWPS’) clients were purchased by Digital Wealth Systems Limited (‘Digi’), a provider of workplace pensions to employers and employees. These QWPS schemes continue to be operated by Quai. Quai Investment Services offers pension and ISA administration services for corporate clients and is based in Cambridgeshire.

The move means that consumers whose products were being administered by Intelligent Money can continue to contribute, withdraw and make investment decisions on their products.

Earlier this year the FCA warned former customers of Intelligent Money that they should “remain alert to the possibility of fraud.” The regulator advised clients cold called by someone claiming to be from Intelligent Money, Quai, Interpath Advisory, or any other company claiming to be involved in the administration, to end the call.

• Quai says it will communicate next steps to consumers holding Intelligent Money products who can also contact Quai at This email address is being protected from spambots. You need JavaScript enabled to view it.