, Liberty Sipp Goes Into Administration, Pension Justice

Case Summary

On 27 April 2020 administrators were appointed to the troubled SIPP provider Liberty SIPP.

Liberty was overwhelmed by a mountain of claims being made against it and recently a number of decisions had been made against Liberty SIPP by the Financial Ombudsman Service which ordered them to compensate SIPP investors.

In some of the FOS decisions, the company’s duty of care to clients was found to have been breached. The company allowed its clients to invest in high-risk, unsuitable investments through their SIPPs, as well as accepting Avacade’s business, an unregulated introducer company.

Some of these high risk investments include Ethical Forestry, Harlequin Property, Green Oil Plantations, SCS Farmland and many more.

Liberty was advised that in view of the large number of claims it should enter administration to provide protection for creditors including former customers.

Liberty were advised that in view of the large number of claims it should enter administration to provide protection for creditors including former customers.

Can I still make a complaint against Liberty SIPP Limited?

Yes, if you stand to lose money due to a lack of due diligence on the company’s or your financial advisor’s part,  it is possible to bring a claim against Liberty SIPP through the FSCS.

We would advise anybody who has a SIPP with Liberty to contact us immediately as compensation may be payable up to £85,000 per case.

Why contact Pension Justice for help with your claim?

Using a claims management company to pursue a pension compensation claim is not mandatory. Depending on the circumstances, you can present your case to the pension provider, financial ombudsman service or the FSCS (in the case of a failed firm) for free, subject to any time limits within which a claim must be made.

However, our experienced claims processing team can offer invaluable expertise and support throughout the process. We can help you navigate complex legal processes and alleviate the stress and burden of pursuing a pension mis selling claim alone. 

 

, Liberty Sipp Goes Into Administration, Pension Justice

 

Liberty SIPP Timeline:

October 2019Liberty SIPP Limited sold its business and customer assets to EBS Pensions Limited (Embark Group). However, the legal entity Liberty SIPP retained its liabilities. 

 27 April 2020 – Liberty SIPP Limited, a firm authorised and regulated by the Financial Conduct Authority (FCA), appointed Andrew Poxon & Alex Cadwallader of Leonard Curtis as Joint Administrators. [1] This was due to the volume of complaints related to SIPP mis-selling.

January 25 2021 – Liberty SIPP is placed in default and the FSCS began accepting claims and paying compensation where due.

April 2021 – To date, the Financial Compensation Scheme paid out almost £49m in compensation. At this point, it had received 1,795 claims – 1,357 successful and 153 unsuccessful. [2] 

Photo: Money by 401(K) 2013 licensed under Creative commons 5