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Sipp provider Intelligent Money has entered administration over concerns about its financial liabilities after it received complaints.
According to an update from the Financial Conduct Authority, the company's directors have appointed Richard Heis and Edward Boyle of Interpath Advisory as joint administrators.
Yesterday (May 28), Intelligent Money sold its pension business to Quai Administration Services Limited with Quai, QASL’s regulated subsidiary, taking over administration of Intelligent Money’s Sipps.
The FCA said this ensured the administration of Sipps, Isas and General Investment Accounts was transferred to Quai so savers can continue to contribute, withdraw, and make investment decisions.
Tony Webb, Quai's chief executive, said: "This move not only ensures stability and continuity of service for Intelligent Money IFAs and clients but also represents a significant enhancement of our technical infrastructure."
According to a statement, Quai has retained the entire Intelligent Money team, together with the Shire Hall offices in Nottingham, and is now recruiting new staff to assist with backlog.
Webb added: "This acquisition marks a milestone for us, increasing our headcount by 50 per cent and allowing us to further strengthen our team.
"Quai has been in this market for 13 years and with established Sipp solutions and strong client-focus, there is a natural alignment between the two firms."
The deal takes Quai to more than 40,000 Sipp accounts and £2bn assets under administration.
Additionally, Intelligent Money’s 10,500 qualifying workplace pension scheme clients were purchased by Digital Wealth Systems Limited.
The administration came about after Intelligent Money received an upheld final decision from the Financial Ombudsman Service regarding some of the investments it allowed within its Sipps.
Intelligent Money’s directors recognised the financial liabilities associated with this and other similar complaints and, having obtained professional insolvency advice, appointed joint administrators.
The Financial Services Compensation Scheme is now open to claims against Intelligent Money and is investigating whether there are any claims which meet its qualifying conditions for compensation.
amy.austin@ft.com
