PSG SIPP - Case Update

A self-invested personal pension operator which operated around 5,300 SIPPs with a total investment value of approximately £1.2 billion has had the last part of its business purchased out of administration.

PSG SIPP was incorporated in September 2009 for the purpose of providing third-party administration services to SIPPs. It was authorised and regulated by the FCA, growing to operate 12 SIPP schemes within which there were approximately 5,300 individual SIPPs. The company had particular expertise in property SIPP administration and dealing with international SIPP clients, with approximately 65% of its client base residing overseas.

The company was materially impacted by the February 2024 liquidation of Brite Advisors, an Australian company which operated an investment platform for SIPP providers. Approximately 400 of the company’s individual SIPPs used the Brite platform, and the liquidation of Brite created contingent liabilities for the company resulting from potential losses to customers invested on the Brite platform.

Evelyn Partners were initially engaged in February 2024 to provide the company with a review of the options available in the context of Brite’s liquidation, and then to carry out an accelerated sale process of the business and assets of the company. The company ultimately entered administration on 25 October, and Chris Allen and Adam Stephens of Evelyn Partners were appointed joint administrators.

Two transactions were entered into simultaneously following the administrators’ appointment: (1) a pre-packaged sale of the majority of the company’s business and assets (excluding its Unity SIPP scheme) to Alltrust Services, which preserved 51 jobs; and (2) an exchange of contracts with London & Colonial Services for the transfer of the Unity SIPP business, to be completed in January 2025. A transition services agreement was also entered into with Alltrust to provide the required staff and systems to operate the Unity SIPP until the sale was completed.

Now, the sale of the Unity SIPP scheme to London & Colonial (which has since changed its name to Pathlines Pensions) has completed, ensuring continuity of service to the clients within the Unity SIPP.

Read the administrators’ proposals (filed in December) here.

Osborne Clarke, led by Will Gunston and Noline Matemera, acted as legal advisers to the joint administrators; Addleshaw Goddard, led by Karl Clowry, acted as legal advisers to Alltrust; and Withers, led by Harvey​​​​ Knight, acted as legal advisers to London & Colonial.