As the industry prepared for Sipp provider Berkeley Burke to appeal in the Court, today the news broke that the firm was placed into administration.
Since 2011, Berkeley Burke has been involved in controversy surrounding its Sipp portfolio and the lack of due diligence applied to clients’ investments. You can read more on the timeline here.
What does this mean for investors?
Berkeley’s Sipp business was sold to Hartley Pensions and its untainted assets remain intact. Berkeley Burke customers must now contact Hartley if they wish to make changes to their pension.
What about the appeal?
Those in litigation with Berkeley Burke on due diligence of high-risk investments will be pleased to learn that the decision still stands and they are still entitled to compensation.
However, claimants with investments worth more than £85,000 are likely to lose out. This is the upper compensation limit offered by the Financial Services Compensation Scheme (FSCS).
Our expert Glyn Taylor said: “We believe that this is another move for Berkeley Burke to avoid its legal responsibility to mis-selling victims.
“We predicted that the firm would opt for insolvency ahead of the high court appeal, which was scheduled for next month, as it was unable to pay the interim £1m to the group litigation claimants, and also relied on a form of crowdfunding to pay its legal costs.
“It was highly likely that Berkeley Burke would have lost the appeal, as it would have had to prove that the Ombudsman created a new duty of care, far beyond what was in place at the time.”
As the appeal will no longer go ahead, we will continue to litigate on behalf of our clients to ensure the best outcome possible.
Please get in touch if you believe you have a claim. Our team of experts can advise you on the best course of action.