SIPP Investment not been made.

Jonesy1977

Hi All,

Slightly odd question hopefully someone might have an insight.

I hold a SiPP with a commercial property within it, this was set up over 1 year ago and since then regular payments + rental payments have been made into the SIPP.

1 year ago following an advice meeting with the IFA involved I was given the option of a passive or active investment model (I chose passive) with a view to all regular payments being invested throughout the year.

It turns out that this instruction was not completed by the SIPP provider and they are now saying that they do not offer their passive model within a SIPP and that I will have invest in the active model at today's price.

I strongly feel that they need to explain why they did not invest as instructed and make me whole on any losses (which would be minimal) - they did not communicate anything nor have they explained why they did not carry out the instruction.

Do I have a worthwhile complaint here and if so is it with IFA or SIPP provider?

Many Thanks!

SonOf

Do I have a worthwhile complaint here and if so is it with IFA or SIPP provider?

You may not need to jump to complaint yet but it may be necessary in the end. It is something that could be resolved without complaint if all sides are willing.

What does the IFA say about this as they would be the one that gave the instruction to the SIPP provider?

Malthusian

Depends why the instruction was not completed by the SIPP provider - whether the problem was with the instruction they were given or whether they didn't process it properly.

I would ask the IFA for a full explanation in the first instance, and then send the complaint accordingly (unless the IFA immediately fesses up and offers redress). The IFA is the first point of contact and should be more responsive. If neither wants to take responsibility, complain to both.

I am surprised that the IFA did not pick up that the regular payments were not being invested, but to play devil's advocate, the SIPP provider may have provided confirmation that the regular payment instruction had been set up. That would have given the IFA every reason to think job done, and there would be no particular reason to check on it again until the next regular review. Then maybe something went wrong after that.

Jonesy1977

Thank you - I do think there is a possibility that the IFA did not pass on the instruction, however regular payments were set up (at the same time) and this did happen.