SIPP and cross-border financial services firm STM has expressed “disappointment” at the Court of Appeal’s decision to allow a challenge to the judgment in the long-running ‘Adams’ case.
Last week the Court of Appeal granted Mr Adams permission to appeal the case won recently by STM’s SIPP subsidiary Options, formerly Carey Pensions.
The Appeal court is expected to hear the appeal in early 2021.
In May The High Court found in favour of Carey (Options) in the case that dates back to 2018.
Alan Kentish, chief executive of STM, said: “From Options’ point of view, the decision to grant permission for the appeal is disappointing. Clearly, the appeal will be something that is of interest to the whole of the UK financial services market that transacts ‘execution-only’ business, not just the pension industry.
“The original judgement was detailed and well considered, so we continue to believe that it was the correct decision and will be upheld following the appeal.”
Carey Pensions, now known as Options SIPP, hailed victory in the long-awaited Adams Case over who is liable for SIPP investments.
The High Court dismissed three claims from Mr Adams which have been seen to have major implications for the SIPP sector over who is responsible for investments.
Mr Adams brought the court case in 2018 by claiming that Carey was liable for losses on investments made in his SIPP even though Carey had not advised on the investments.
The case related to the liability Carey had for storage investments selected by Mr Adams.
Carey said Mr Adams was introduced by an unregulated introducer and transferred an existing pension fund into a SIPP administered by Carey. He then instructed that his SIPP be used to purchase a number of rental units from Store First.
Carey carried out the transaction on an execution-only basis as a pensions administrator.
However Mr Adams’ investment in Store First did not perform as he had expected and he brought a claim against Carey seeking damages for his losses.