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What happens if my SIPP provider goes bust?

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Investing in a self-invested personal pension (SIPP) can bring great rewards, however many SIPPs are high risk. While your finances are, or at least could be, knowingly at risk, your SIPP provider should be secure. We’ve got some advice on what to do if your SIPP provider goes bust.

What if my SIPP provider goes bust?

If your provider goes bust, your money should not be impacted. Your money is not invested into the SIPP provider; they simply manage your investment.

Your money should be held separately in the specific investments you (or your SIPP provider) have chosen and cannot be taken by creditors.

Where does my SIPP money go?

Your SIPP is placed across a number of investments by the provider. You should have been made aware of these investments when you first invested your money. However, if you aren’t, you can request the details of this from your provider.

Can I make a claim if my SIPP provider goes bust?

If you feel your SIPP was mis-sold because you weren’t full aware of the risks or weren’t given advice suitable to your circumstances when you initially invested your money, you can still claim compensation even if your SIPP provider has gone bust. The Financial Services Compensation Scheme (FSCS) was designed for this purpose. Depending on the type of SIPP provider, you are entitled to different levels of compensation for your investment.

How much can I get back if my SIPP provider goes bust?

The amount of your investment secure in the event that your SIPP provider goes bust depends on the type of company the provider is. If your Sipp provider is:

  • A pensions company, you are protected for up to 90 percent of your investment.
  • A specialised SIPP company, the FSCS protects investments up to £50,000.

If you believe you were mis-sold a SIPP, get in touch with our team of legal experts today.