Gaudi SIPP – Platform One

Gaudi Regulated Services Limited, a previously respected SIPP provider and administrator, faced the axe after multiple decisions by the Financial Ombudsman Service (FOS) landed them with an unaffordable financial burden.

  • Let’s break this down:

    • Who was Gaudi? Gaudi was an authorised SIPP provider, monitored by the Financial Conduct Authority (FCA), a City watchdog responsible for setting the guidelines for the UK’s financial services businesses and intervening when necessary.
    • Why did Gaudi go into administration? A slew of decisions by FOS, the government-backed body tasked with resolving disputes between financial businesses and their customers, placed enormous financial liabilities on Gaudi, leading to their downfall.

  • The investigation by the FOS into Gaudi’s investments revealed a concerning lack of due diligence:

    • Case in point – Mr C’s complaint: Mr C, an investor, blamed Gaudi for failing to conduct thorough checks when he applied for a SIPP and invested in Affinity Global Developments bonds. His entire pension pot of nearly £700,000, transferred into the Gaudi SIPP in 2015, was invested in these high-risk bonds via Beaufort Securities. Fast forward five years, Affinity Global Developments went into liquidation, and Mr C’s funds evaporated.
    • The FOS verdict: FOS upheld Mr C’s complaint, ruling that Gaudi shouldn’t have allowed such a high-risk, single-fund investment without adequate financial advice. The convoluted connections between Dante, Beaufort, and Mr H should have set off alarm bells, signalling potential scam risks.

  • The aftermath: These FOS-identified failings left Gaudi facing an insurmountable compensation bill, leading to their declaration of insolvency and subsequent administration.

  • What happened to Gaudi’s pension business? Gaudi’s pension business was sold to Platform One. If you were an investor with Gaudi, expect to hear from Platform One soon regarding next steps. Don’t worry if your Self-Invested Personal Pension (SIPP) scheme was operated by Gaudi on behalf of other firms – those businesses remain unaffected by Gaudi’s administration, so your SIPP is safe.

In a Nutshell:

SIPP Providers: