Safe Hands Plans Limited - Case Update

The Serious Fraud Office (SFO) has opened a criminal investigation into a suspected fraud at Safe Hands Plans Limited and its parent company SHP Capital Holdings Limited, a funeral plan provider which collapsed in March of last year after withdrawing its application for FCA approval.

On their appointment as joint administrators, Nedim Ailyan and Ben Stanyon of FRP Advisory worked to secure the company’s assets and any trust funds, which by their nature did not belong to the company.

Unfortunately, the administrators' investigations revealed a significant shortfall between the assets held in trust and the amounts required to pay for plan holders' funerals, such that plan holders (of which there are about 46,000) are likely to receive a distribution of only between 11–15p in the pound.

To kickstart its investigation, the SFO sent notices requesting information to stockbrokers, financial institutions, UK banks and other potential witnesses. Non-compliance with these notices is a criminal offence.

The SFO has said it is pursuing various lines of enquiry and that its investigation may result in a criminal prosecution, which the SFO would conduct using its powers as a prosecuting authority.

The SFO’s announcement can be found HERE. The administrators have been assisted by Pinsent Masons (legal advice) and Shipleys (accounts and tax advice).