FSCS considers payouts for HD Administrators Sipp investors

The Financial Services Compensation Scheme is reviewing the claims of investors in HD Administrators, the company which operated a Sipp linked to the collapsed £60m Arck property investment vehicle.

The FSA censured and banned HD Administrators partner Michele King in November last year for failing to fulfil her regulatory responsibilities.

In March 2012, Fundweb sister publication Money Marketing revealed the FSA had suspended HD Administrators’ permissions, preventing it from operating and paying out any funds.

Many investors used their pension savings to invest in Arck through HD Sipp. Arck entered liquidation last year.

Nottingham Police subsequently arrested two of the HD Sipp trustees. One of the trustees was also a partner at HD Administrators.

HD Sipp is now administered by Mattioli Woods.

In an update on its website, the FSCS says: “FSCS is currently considering whether FSCS will have a role to play in paying compensation to clients of the firm. 

“FSCS is reviewing whether the firm is liable for investors’ claims and will need to consider the investigations of other interested parties, such as the administrator and Serious Fraud Office.

“FSCS will provide a further update as soon as the position is clearer. At that time we will also confirm any claims process for clients of HD Administrators LLP who have not yet made a claim to FSCS.”