Administrators of collapsed pension provider Berkeley Burke Sipp Administration Limited have warned that the Financial Services Compensation Scheme (FSCS) will pick up the bill for £158m worth of complaints.
In September Berkeley Burke, appointed RSM to wind the business down. The Sipp provider's client bank was sold to Hartley Pensions for £800,000, but Berkeley Burke Sipp Administration's liabilities were not taken on as part of the acquisition.
Now the firm's joint administrator Adrian Allen has said in his report, Berkeley Burke was facing client claims of around £158m.
It is likely that the FSCS would pay valid claims of up to £85,000 per client"
This is broken down by £150m arising from the judicial review case loss and around £8m separate claims submitted to the Financial Ombudsman Service through a group litigation order.
It is estimated there is £1.4m in assets available for preferential creditors.
Following the firm's collapse, these claims may fall on the FSCS.
"It is likely that the FSCS would pay valid claims of up to £85,000 per client, and then stand in the place of those clients with a subrogated claim against the company. This is likely to include all personal clients and the claims could be up to £158 or more," the firm's joint administrator Adrian Allen has said in his report.