Administrators have given more details on the failure of major SIPP provider and fintech Gaudi which went into administration yesterday.

Gaudi Regulated Services fell into administration yesterday, on the same day the firm sold its pension book to platform provider Platform One. 

Platform One has taken over the £1bn-plus SIPP assets administered by Gaudi, with the deal completed as the joint administrators were appointed.

Wiltshire-based Gaudi employs 20 staff, all of whom will transfer to Platform One, according to the administrators.

Insolvency experts at Quantuma arranged the sale of Gaudi Limited and its subsidiary, Gaudi Regulated Services Limited.

Quantuma said claims arising from complaints to the Financial Ombudsman Scheme had pushed Gaudi into administration.

Gaudi is one of the UK's largest SIPP providers and provides 'white label' services to support its own-brand pensions and investment business. It provides the technology, administration, technical and compliance expertise for over 20,000 SIPPs and has 13,500 customers. According to its latest set of accounts, it recorded annual revenues of £2.1m and had net assets of £1.5m.
 
Joint administrator Sean Bucknall said: “Claims arising as a result of a small number of complaints made to the Financial Ombudsman Service would have rendered the company insolvent and unable to meet the FCA’s capital adequacy test. It was therefore imperative that the directors sought to take appropriate action to protect the interests of their customers and mitigate any impact of an impending insolvency on them.

“I am delighted to have achieved such a positive outcome and am grateful to the FCA and the team at Platform One in the roles they have played in getting this transaction completed and in doing so, protecting the interests of the SIPP holders and securing the long-term future of this business under new ownership.”

It has not been disclosed how much Platform One has paid for Gaudi or the amount of liabilities which caused Gaudi to go into administration.

Gaudi was hit with several upheld final decisions from the Financial Ombudsman Service on some of the investments it allowed within its SIPPs.

The Financial Services Compensation Scheme is now investigating Gaudi to ascertain whether clients may have valid claims for compensation.

At the end of December the FCA imposed a number of asset sale restrictions on Gaudi. 

Gaudi’s business model was to operate pension schemes for other firms (a so-called ‘white-label’ model). The FCA says the business partners are not affected by Gaudi’s administration and because Gaudi’s pension business has been sold to Platform One the services they offer will stay the same.

Platform One will use its acquisition of Gaudi to launch its own on-platform SIPP and will rebrand Gaudi to Platform One.

Consumers who hold a SIPP administered by Gaudi can continue to contribute, withdraw, and make investment decisions. Platform One is contacting consumers holding a SIPP administered by Gaudi. Platform One’s contact details are: Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Phone number: 0345 366 5445.

The FCA has warned Gaudi customers to beware of scammers offering to help them, especially if they cold call. The FCA has pointed out that Gaudi customers do not need to use Claims Management Companies to submit a claim to the FSCS.

Customers can get in touch with the administrators Quantuma at Email: This email address is being protected from spambots. You need JavaScript enabled to view it.; Phone number: 01202 970 430.