The Financial Conduct Authorised (FCA) has announced that the troubled SIPP Provider Liberty Sipp has entered administration with named administrators, Andrew Poxon and Alex Cadwallader of Leonard Curtis.
Due to the Financial Ombudsmen Service receiving a high volume of claims relating to high-risk non-standard investments made against Liberty, insolvency would be the only option to provide protection for creditors plus former customers.
In August 2018, the FOS received just over 500 complaints from Liberty clients who had allegedly lost money after transferring their pensions into hight-risk investments through unauthorised firms which since have become illiquid meaning that they can’t be currently sold or traded.
What occurred In October 2018 after the mis-selling claims were filed with the FOS, Liberty Sipp Limited trading assets were sold to a subsidiary of the Embark Group, EBS Pensions Limited, which then rebranded the Liberty SIPP as the Option SIPP
However, the legal entity Liberty SIPP was not part of the sale and retained its liabilities and consequently had to pay out against any complaints using the assets it held.
Due to the lack of due diligence made by Liberty into these high-risk investments, the Financial Services Compensation Scheme (FSCS) are now accepting claims against Liberty SIPP and hundreds are expected where customers could receive up to £85,000 if their claims are deemed eligible.
If you have been affected by SIPP Pension services offered by Liberty SIPP Ltd and would like to discuss how we may be able to help give us a call on 01903 931043.
Information in this article was sourced from