New Model Adviser recently reported that Sipp provider Berkeley Burke is in talks to sell the business. We discuss what the Berkeley Burke sale could mean for your case.
Berkeley Burke is currently at the centre of a landmark legal battle. The Financial Ombudsman Service (FOS) handed down a ruling that the firm failed to carry out appropriate due diligence on a client’s investment. The Sipp provider argued at the time that it was not responsible and maintains this. The ruling set a precedent for financial mis-selling cases.
Berkeley Burke sale
The Berkeley Burke case may see Sipp providers hit with a huge number of due diligence claims and with ongoing negotiations, the appeal will likely be put on hold.
The legal fees of the case have cost the firm £1.2m to date and the Court of Appeal will add to this cost. The new owners may not wish to risk the hefty legal fees of an appeal.
Will the sale impact my case?
Following the Berkeley Burke sale, the firm will still be liable to compensate victims.
Thousands of mis-selling victims had their cases put on hold while the Berkeley Burke case was ongoing. However, the decision meant that the FOS is able to use the case to make rulings on similar instances.
While things may be slowed down for Berkeley Burke claimants due to its sale, the rest of the industry should not be impacted, meaning that the Liberty Sipp FOS case will go ahead as planned.
If Berkeley Burke handled an investment you believe was unsuitable, get in touch. Our team of experts can offer support and advice.