The UK's Financial Services Compensation Scheme (FSCS) has declared Hartley Pensions in default so it can pay compensation on clients' exit charges.

The FSCS said in a notice that the SIPP and SSAS operator 'failed' on 21 February 2024.

While the company is in default so compensation on the exit charges can be paid, the FSCS has not opened or received individual claims against Hartley Pensions.

Normally a company is put in default if the FSCS has received at least one claim and is satisfied the company is unable to return money to eligible customers itself.

At the end of last month (January 29), the FSCS U-turned on its previous decision and said it would protect Hartley Sipp members by paying compensation for the exit and administration charge.

Investment International reported on 27 December last year that SIPP holders with Hartley Pensions were facing soaring exit costs as the SIPP provider's administrator UHY Hacker Young is seeking to impose exit and administration charges for transfers running into many millions of pounds.

Peter Kubik and Brian Johnson of UHY Hacker Young LLP were appointed as joint administrators on 29 July 2022.