SIPP Provider Intelligent Money Enters Administration, Client Book Secured in Rescue Deal

Intelligent Money, a SIPP provider with around £1bn in client assets, has entered administration. However, a pre-pack administration rescue deal has facilitated the transfer of its client accounts and assets to pension administrator Quai.

The FCA announced yesterday that Intelligent Money, based in Nottingham, has appointed Richard Heis and Edward Boyle of Interpath Advisory as joint administrators. This follows the company’s agreement to an asset retention restriction in February.

According to the FCA, the administration was triggered by a final decision from the Financial Ombudsman Service (FOS) regarding certain investments allowed within Intelligent Money’s SIPPs. The directors of Intelligent Money acknowledged the financial liabilities associated with this and other similar complaints. While the exact amount of redress is unclear, Citywire New Model Adviser reported last week that the FOS had received over 80 complaints against the SIPP provider, with some claimants represented by legal firms.

The FCA stated that the Financial Services Compensation Scheme is open to claims against Intelligent Money and will investigate whether any claims meet the qualifying conditions for compensation.

Rescue Deal

On May 28, the same day the administration was announced, a deal was struck to transfer Intelligent Money’s SIPPs, ISAs, and general investment accounts to another FCA-regulated firm, Quai Investment Services (Quai). This ensures that Intelligent Money’s clients can continue to contribute, withdraw, and make investment decisions as before.

A representative from Quai clarified that the acquisition excluded any potential liabilities associated with Intelligent Money. deal also includes the transfer of Intelligent Money’s technology and staff to Quai, ensuring a smooth transition for all clients, their assets, and services, according to a Quai press statement.

After the acquisition, P1 Investment Management will keep managing Intelligent Money’s funds and portfolios. Quai’s CEO Tony Webb stated that this move ensures stability and continuity of service for Intelligent Money’s IFAs and clients, while significantly enhancing Quai’s technical infrastructure.

Founded in 2011, Quai provides an outsourced administration platform. The acquisition of Intelligent Money adds £1bn of client assets, increasing Quai’s total assets under administration to £2bn.

Despite making a pre-tax loss of about £1.1m in the year to October 2022, with auditors expressing doubts over its ability to meet financial obligations, Quai has stated that the business is now profitable with no issues regarding working capital or cash flow.

Intelligent Money was favored by advisers for its low product fees, charging £195 annually for its SIPP product as of last year. However, the company faced backlash last December after requesting a one-off 1% payment from all SIPP holders due to high operational and regulatory costs, a decision it later retracted. The business also offered a range of investment portfolios managed by P1.