Claims against defunct pension firm Rowanmoor will be on hold for "at least another 6 months" as the Financial Services Compensation Scheme continues its investigation into the failed business.
The FSCS has written to claimants updating them on the progress of their long awaited claims, which are on hold while its emerging issues team probes what went on at the £1.4bn Sipp operator.
It explained the investigation was still ongoing and would take at least another six months before claims are moved on for assessment.
The FSCS said in its letter to a claims manager representing a claimant: "The firm investigation is ongoing and will take at least another six months.
"We are working with the relevant parties to get the information and documentation we need so that we can complete our investigation into the firm.
"Claims will remain on hold until the Emerging Issues team has completed its investigation. After this, your client’s claim will be moved to one of our assessment teams."
Rowanmoor collapsed last August under the weight of hundreds of complaints related to failed offshore investments in its Sipps.
These were then rerouted from the Financial Ombudsman Service to the FSCS, which has been investigating them since.
Some of those claims date back to 2019, and investors have told FTAdviser of the financial hardship they are facing due to the delays in settling their claims, with one investor who is nearing retirement saying he will have to sell his house to make ends meet.
Solicitor Claire Collinson, who represents a number of claimants, said: "Consumers who received confirmation from the Financial Ombudsman Service as long ago as January 2022 that they have legitimate claims against Rowanmoor and are due compensation are being significantly prejudiced by this ongoing and unexplained delay at the FSCS.
"One of my clients is actually at retirement age and needs his pension money now. He has had to put his home on the market as a direct result of the ongoing delay.
"Particularly where Rowanmoor themselves have put aside £71mn for consumer complaints, and agreed to follow the Fos test case against them, the FSCS’s continued delay in processing these claims is wholly unreasonable and is causing direct financial hardship to consumers the lifeboat scheme is intended to protect."
The FSCS told FTAdviser its investigation into Rowanmoor was progressing.
A spokesperson said: "Investigations into Sipp operators like Rowanmoor are very complex due to non-standard investments accepted into the pensions they offered.
"FSCS must complete these investigations thoroughly before we can determine the eligibility of claims."
They added: "We recognise that the failure of a pension provider can cause uncertainty for customers and sometimes financial hardship. We do what we can to address these issues as soon as we can."
The FSCS said it would provide a more specific timeframe for the completion of this case "as soon as we are able to".
