“There's no consideration changing hands in relation to this, we've simply said ‘yes, we'll be the nominated operator’,” he explained. “We'll try to help these clients where we can.”
“We had to think long and hard about our own reputation around this and it's very dear to us. One of our concerns was what the industry 'blow back' would be around this. We thought long and hard about that.
“But in the end, somebody's got to step up and do something."
He added: "We pride ourselves on our customer service, but we understand, and I'm pretty sure, that in those first few months there's going to be people who are unhappy because they'd expect everything to be done immediately.”
Carty said there were clients that he has dealt with already that have some Hartley arrangements, so he understands people's frustrations.
Toxic assets
There is no set timeline as to when the transfers will begin but it is expected that documents will be posted to clients who will move to Morgan Lloyd in late July 2024.
Hartley Pensions clients have been waiting a long time for the transfer process to gather speed; there have been bitter disputes and legal issues, as previously reported.
The firm first went into administration at the request of the Financial Conduct Authority back in July 2022.
Administrators UHY Hacker Young previously set out how transfers would happen in tranches, with the simplest going first.
“There are a good number of people that have got toxic assets but actually the majority have got fairly straightforward pension schemes with commercial property, cash, etc,” Carty explained.
He said clients will have 45 days from when they are communicated with to decide whether they want to transfer to Morgan Lloyd or to choose another provider.
If people do not respond they will automatically be transferred to Morgan Lloyd.
“The likelihood is that those Sipps with more straightforward, standard type assets - by which I also include commercial property - are going to be the first that are going to be offered the opportunity to transfer out,” Carty said.
“Those with more problematic assets that are still subject to potential FSCS claims, or whatever the case may be, will follow in due course.
“It's the same with anything; you cannot just let 16,000 people go at the same time, it's just not possible.
"You're always going to deal with the simplest first so they are done and sorted, and then you can concentrate efforts on the ones that are going to be a lot more difficult to deal with.”
