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Troubled Sipp provider looks for sale as losses mount

Sipp provider Carey Pensions has been put up for a sale as it has swung to a loss for the second year in a row and awaits the result of a court case.

Troubled Sipp provider looks for sale as losses mount

Troubled Sipp provider Carey Pensions has put itself up for a sale as it has swung to a loss for the second year in a row.

In company accounts released last week Carey Pensions announced it will be put on the market after a deal is agreed for its corporate pension business.

‘Carey Corporate Pensions UK, another member of the group is currently in negotiations to be sold to a third party. Once this sale has been completed it is management’s intentions to also sell the company in the near future,’ the results document said.

Carey Pensions’ chief executive Christine Hallett told New Model Adviser® the firm has been approached by firms interested in buying the Sipp business but that it will also consider other options such as a management buy out (MBO).

‘Our core business remains strong and robust we are committed in providing an excellent service to all our clients. We continue to be approached and we will consider options that might be right for our business which we will continue to do. Our management team are strong and will consider an MBO  to ensure the independent Sipp companies remain in the marketplace.

‘We have no fear for the future it looks bright from where we stand,’ she said.

The Sipp provider was the subject of a landmark legal battle in March over unregulated investments it accepted. The judgement for that legal case at the High Court, which could have far-reaching effects on the rest of the Sipp market, is yet to be published.

The accounts also revealed Carey Pensions reported a loss of £215,226 in 2017, up from £153,784 the year before, which it attributed in part to legal costs.

‘These losses have arisen as a result of a number of complaints and legal cases relating to some historic business which is now being run down,’ the results said.

The accounts also showed how in 2015 seven storage pods were transferred to the Sipp provider ‘as part of a claim settlement’.

When asked why these investments were transferred, Carey Pensions was unavailable for comment.

Carey Pensions wrote to some members in February saying their Sipps are being moved to a ‘distressed’ book of business which would include ‘members with illiquid non-standard assets', as New Model Adviser® reported earlier this year.

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