SIPP Operator Liability — A Guide

What Is a SIPP Operator?

A Self-Invested Personal Pension (SIPP) operator is the FCA-authorised firm that administers the SIPP wrapper — accepting transfers, holding assets, and carrying out the administrative function. The SIPP operator is separate from any financial adviser who recommended the transfer.

The SIPP Operator's Due Diligence Duty

Berkeley Burke v FOS [2018] EWHC 2878 established that a SIPP operator cannot use execution-only contractual status to avoid its duty to conduct adequate due diligence on the introducing firm and the underlying investments placed into its SIPP wrapper. This duty is non-delegable — it cannot be contracted away.

FSMA s.27 — Unenforceable Contracts

Adams v Options UK [2021] EWCA Civ 1188 established that where a SIPP is established through an unregulated intermediary, the contract is unenforceable under FSMA s.27. The remedy is full unwinding — the original transfer value is recoverable regardless of the FSCS cap. The suitability of the investment is irrelevant.

The FSA Warning List — Constructive Knowledge

Fletcher v Options UK [2024] EWCA Civ 541 confirmed that SIPP operators who accepted business from introducers appearing on the publicly available FSA/FCA warning list cannot rely on execution-only terms as a defence. Publicly available information is sufficient to establish constructive knowledge of the introducer's regulatory position.

How to Claim Against a SIPP Operator

SIPP operator claims run separately from adviser suitability claims. If your SIPP operator is in FSCS default, direct FSCS claims are open. Where the operator is still solvent and failed in its due diligence, FOS and civil court routes apply. Many clients have simultaneous claims against both their adviser and their SIPP operator.