The Financial Conduct Authority (FCA) has urged Self-Invested Pension Plan (Sipp) providers to contact the regulator if they feel unable to meet their financial commitments.

Following the Sipp provider Berkeley Burke’s fall into administration, and subsequent decision not to appeal due to lack of funds, the FCA has encouraged providers to contact it before it’s too late.

In an online statement, the FCA stated: “We reiterate that if the outcome of this case calls into question a Sipp operator’s ability to meet financial commitments as they fall due, they should contact the FCA immediately.

“We also remind firms of their obligations to treat complainants fairly and handle complaints according to the rules set out in the Dispute Resolution Handbook.”

Berkeley Burke fell into administration after a Financial Ombudsman Service decision which ordered the provider to pay nearly £1m to people who were affected by high-risk unregulated investments made and accepted into the firm’s schemes.

The FCA continued: “Where a firm receives an ombudsman decision, it should, in accordance with Principle 6, consider whether it ought to act with regard to the position of customers who may have suffered detriment from, or been potentially disadvantaged by, such problems but who have not complained and, if so, take appropriate and proportionate measures to ensure that those customers are given appropriate redress or a proper opportunity to obtain it.”

It also urged Sipp operators that pursues a sale of part or all of its business or assets to consider its implications for customers who may have compensation claims.

All directors are expected to comply with their statutory and non-statutory duties, including where a firm is at risk of insolvency and their duties to creditors.

The FCA concluded: “We will continue our work with firms and stakeholders across the sector.”

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