Rowanmoor Personal Pensions Limited

Rowanmoor Personal Pensions Limited (RPPL), a Self-Invested Personal Pension (SIPP) operator authorised and regulated by the FCA, entered administration on 31 August. Adam Stephens and Chris Allen of Evelyn Partners were appointed as Joint Administrators.

RPPL operated approximately 5,000 pensions, with assets under administration of £1.5bn.

RPPL was owned by Embark Group Limited (“Embark“). In July 2021, Embark was acquired by Lloyds Banking Group plc. Under the terms of the agreement, RPPL was excluded from the sale.

As part of the demerger, Embark shareholders paid £71m to RPPL in respect of the redress RPPL might be required to pay to customers that had invested in non-standard investments (“NSIs“). NSIs are high-risk investments, many of which have failed, resulting in a significant number of complaints against RPPL being made to the Financial Ombudsman Service. Of the approximately 5,000 SIPPs administered by RPPL, approximately 65% were considered to hold NSIs.

In accordance with its regulatory obligations, RPPL determined that it should offer proactive redress to all customers that had suffered a loss. However, even with the funds provided by the Embark shareholders as part of the Rowanmoor demerger in January 2022, it was considered unlikely that there would be sufficient funds available to provide full redress to all customers that had suffered a loss following a subsequent review of RPPL’s contingent liabilities carried out by its professional advisers. The liabilities were estimated to be in the region of £300m.

After considering its options, including pursuing a Scheme of Arrangement pursuant to Part 26 of the Companies Act 2006, RPPL, in conjunction with its financial advisors, concluded that the most appropriate course of action would be to trade the business whilst in administration and complete a sale of the business and assets post-appointment.

Solicitors from CMS, led by Julian Turner, are assisting the Joint Administrators.

The Joint Administrators’ Progress Report can be found HERE.