The industry lifeboat fund has declared the firm in default, preparing to compensate affected clients.
The discretionary fund manager (DFM) Blankstone Sington has been declared in default by the Financial Services Compensation Scheme (FSCS).
The FSCS has declared Blankstone Sington a failed firm in their latest update, as they prepare to compensate clients affected by the company's failure.
Blankstone Sington went into special administration in October 2023 after failing to find 140 buyers to save the company's assets and underfunded pension scheme. The scheme had a deficit of about £641,000 as of August 2023.
£284 million of clients' funds and assets are currently unavailable until the administrators can either find a buyer or return the assets to investors.
The Financial Services Compensation Scheme (FSCS) has announced that the firm in question has been declared in default. This means that according to the FSCS, the firm owes money to its customers and is unable to meet the cost of any claims itself.
It is unclear if this cost only refers to transferring client assets.
Last month, the lifeboat fund stated that it would compensate customers for costs related to transferring client money and assets to a new broker. This suggests that the DFM has insufficient funds to cover the process from its assets.
The update stated that there is still a significant amount of work required before customers can retrieve their money and assets. The FSCS will keep working closely with the administrators.
The FSCS is not accepting claims at this time, and there is no timeline for when clients will be reunited with their assets.
If you believe that you have been a victim of a mis-sold SIPP or your SIPP is not performing as it was promised, we suggest you contact our specialist lawyers who deal with mis-sold SIPP cases. They can help you claim compensation if you are eligible.
If you want to make a claim for compensation for a mis-sold SIPP, our SIPP claims experts can help you. We offer free initial advice and you can call us on 0800 046 9976, email us at info@smoothcl.co.uk, or fill out our quick online enquiry form. One of our mis-sold SIPP claims experts will immediately get in touch with you.
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