FCA warns of “factual inaccuracies” in Hartley wind-down communications
The Financial Conduct Authority (FCA) has warned retail investors about a number of “factual inaccuracies” in a recent communication from Hartley Pensions’ former director.
Hartley Pensions went into administration earlier this year after the FCA placed restrictions on the investment firm, including the removal of its Innovative Finance ISA (IFISA) permissions.
Peter Kubik and Brian Johnson of UHY Hacker Young were appointed joint administrators on 29 July 2022.
However, according to the City regulator, on 23 November a communication was sent to investors by Tony Flanagan – a director of Hartley and the director of the companies that act as trustee of the Hartley SIPPS.
This communication was sent “without the agreement of either the joint administrators or the FCA”.
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“The communication contains factual inaccuracies which may have caused customers concern,” an FCA spokesperson said.
It is believed that the communication contained misleading information about the risk of investor funds being used to pay for the company’s administration process.
Many of Hartley’s clients used the company’s access to multiple pension schemes and alternative investment options to build out their self-invested personal pensions (SIPPs). The FCA reminded these investors that their money was not invested directly in Hartley and therefore should not be affected by the wind down.
Kubik and Johnson have estimated that Hartley’s administration will take at least 12 months and will cost approximately £2.5m.
“Hartley was subject to a number of FCA requirements due to serious operational, financial and regulatory issues,” the FCA said.
“The firm entered into a number of voluntary requirements between February 2022 and June 2022.
“As a result of these issues, the FCA also requested that the firm go into an insolvency process in the interest of clients.
“The firm sought professional insolvency advice, and, as a result, the director determined that it was insolvent and took steps to place it into administration.”
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