What Happens When a SIPP Investment Fails

Unfortunately, investments can fail or become illiquid.

If an Investment Defaults or Collapses

Possible outcomes include:

• Loss of some or all of the invested value
• Suspension of trading or withdrawals
• Delays in valuation or reporting

What Is Alltrust’s Role If an Investment Fails?

Investing through a SIPP involves risk, and unfortunately some investments may underperform, become illiquid, or fail altogether. It is important to understand where Alltrust’s responsibility begins and ends if this happens.

Alltrust Does Not Make Investment Decisions

Alltrust is not authorised or regulated to provide financial advice. We do not assess whether an investment is suitable for you, your attitude to risk, or your retirement goals.

This means:

• We do not recommend investments
• We do not comment on the expected performance of an investment
• We do not advise whether an investment is appropriate for your circumstances

Investment decisions remain entirely your responsibility, typically made with the support of a regulated financial adviser.

Alltrust’s Role in Relation to Investments

Alltrust’s role is to administer and execute instructions in relation to investments that fall within our permitted investment framework.

Specifically, we will:

• Set up and administer investments that are included within our Permitted Investments List
• Carry out administrative and regulatory checks required to hold the investment within a SIPP
• Ensure investments meet HMRC and scheme rules
• Maintain records, valuations (where available), and reporting

You can view the full list of investments we allow here: Permitted Investments List (available in the Document Library)

What Alltrust Is Not Responsible For

If an investment performs poorly or fails, Alltrust:

• Is not responsible for investment performance
• Will not compensate for losses
• Does not guarantee returns or capital
• Cannot recover funds where an investment has defaulted or collapsed

This applies whether an investment is:

• Standard or non‑standard
• Adviser‑recommended or self‑selected
• Managed by a Discretionary Fund Manager or held directly

If an Investment Fails or Becomes Illiquid

If an investment fails, enters administration, or stops trading:

• Alltrust will continue to administer the asset within the SIPP where possible
• Valuations may be delayed or reduced to nil
• Holding costs may still apply
• The investment may be difficult or impossible to sell

If an investment later becomes non‑permissible due to changes in legislation or regulation, we may require it to be sold or removed from the SIPP, where possible.

The Importance of Financial Advice

Because of the risks involved, Alltrust strongly encourages members to:

• Work with a qualified and FCA‑regulated financial adviser
• Understand their risk appetite and capacity for loss
• Consider how each investment fits into their overall retirement strategy

Certain investments, particularly non‑standard assets, may require formal regulated advice or Knowledgeable Investor status before they can be accepted.

Key Takeaway

Alltrust provides the pension structure and administration — not the investment advice.
Investment performance and outcomes sit with the member.

If you are unsure whether an investment can be held within your SIPP, or what the administrative requirements are, our team can help explain the process.

📧 [email protected]
📞 0330 838 3705