Hartley Pensions Limited was declared in FSCS default in February 2024 after inheriting the books of multiple failed SIPP operators — including GPC SIPP — via novation and mismanaging those distressed asset portfolios. Hartley was also found by the FOS to have breached FCA Principle 6 (treating customers fairly) in its administration of inherited illiquid assets. FSCS claims are open.
FSCS default declared: February 2024
Hartley Pensions Limited inherited multiple failed SIPP books via novation — including GPC SIPP Ltd (Guardian), Stadia Trustees, and others — becoming the operator of last resort for thousands of clients holding illiquid, non-standard investments. Rather than resolving the underlying problems with these inherited assets, Hartley continued to charge administration fees on SIPPs holding assets of nil or negligible value.
The FOS found in multiple upheld decisions that Hartley had breached FCA Principle 6 (treating customers fairly) by charging fees on SIPPs where the sole asset had become entirely illiquid and effectively worthless. Clients were unable to transfer away from Hartley because no other provider would accept their illiquid assets — creating a trapped position in which Hartley extracted fees with no prospect of recovery.
Hartley was declared in FSCS default in February 2024. The FSCS funded a mechanism to allow clients to transfer out of Hartley free of charge by paying the exit and administration charges (EAC) directly. FSCS compensation claims for underlying mis-selling losses are also open.
The following decisions are a matter of public record held in the FOS decisions database. Summaries are factual and based on published ombudsman findings. Decision references can be verified at financial-ombudsman.org.uk.
The ombudsman upheld the complaint and found Hartley Pensions had treated the claimant unfairly by charging fees on a SIPP holding illiquid assets of negligible value. The FOS found it was not fair and reasonable for Hartley to continue collecting fees at the inherited rate when the claimant was trapped with an asset that could not be transferred or realised. Hartley was directed to apply a reduced fee structure appropriate to the circumstances.
The FOS found Hartley had charged excessive fees on a SIPP holding a single illiquid asset valued at nil by the FSCS. The ombudsman found Hartley had not treated the client fairly in charging full administration fees on what was effectively a dormant account holding a worthless asset. Hartley was directed to reduce its charges to a rate reflecting the limited administration work actually required.
Hartley Pensions was declared in FSCS default in February 2024. The FSCS has funded free exit transfers for trapped clients. Direct FSCS claims are also open for underlying mis-selling losses relating to the original SIPP operators whose books were novated to Hartley.
Up to £85,000Where your underlying mis-selling loss exceeds £85,000 or where FSMA s.27 applies to the original introducer, civil proceedings may recover the full uncapped amount. Hartley's own administration failures may constitute an independent head of loss.
Uncapped — court proceedingsHartley default declared February 2024 — do not delay. The FSCS claim window is open from the February 2024 default date. However, the FOS six-year clock on the original mis-selling runs from the date of the underlying transfer — not from Hartley's default date. For clients of GPC SIPP, Stadia, or other operators whose books were novated to Hartley between 2015 and 2020, the six-year FOS clock on the original transfer may be approaching expiry. Act now. See redressadvisory.com/time-limits for the full limitation framework.
Figures are indicative only and based on typical case profiles. Your actual position depends on your specific circumstances, the transfer value, and the applicable claim route. Not a guarantee of outcome.
Yes. You may have claims against both GPC SIPP's FSCS default and against Hartley for its own administration failures after the novation. GPC SIPP is also in FSCS default, opening a separate compensation route for the original mis-selling.
No. The FSCS-funded free exit mechanism is separate from compensation claims for underlying mis-selling losses. Accepting the free exit does not waive any compensation claim for the losses you suffered before you transferred out.
Where the SIPP asset has been valued at nil or near-nil, the loss is typically calculated as the original transfer value plus investment growth benchmarked to an appropriate index, minus any amounts received. This is a standard FCA DISP calculation applied by the FSCS and the FOS.
Yes. The FOS upheld multiple complaints against Hartley for charging excessive fees on SIPPs holding illiquid, nil-value assets. These fees may be recoverable as part of your overall compensation claim.
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