Failed Liberty SIPP FSCS Pay Outs
As previously reported, Self-Invested Personal Pension (SIPP) provider, Liberty SIPP, also trading as Liberty Pensions, entered into administration in April 2020. Regulated by City watchdog, the Financial Conduct Authority (FCA), Liberty SIPP faced a growing number of Financial Ombudsman Service (FOS) investigations and findings against it following complaints relating to high-risk, non-standard investments.
Against that background and to protect investors and other creditors, Liberty SIPP was advised to enter into administration.
The latest development has been that in January 2021 Liberty SIPP was placed “in default” by the Government-backed Financial Services Compensation Scheme (FSCS), set up to compensate those who have lost out when a financial firm fails and is unable to meet claims against it.
This means that despite the SIPP provider entering into administration, concerned investors may still be able to recover compensation for their losses. Where an investment provider goes out of business, compensation claims up to the value of £85,000 can still be made through the FSCS.
The FSCS states of Liberty SIPP’s default:
“We’re aware that FCA-authorised independent financial advisers recommended many Liberty SIPP customers transfer their existing pensions into a Liberty SIPP… After the transfer, many customers had their pension funds placed in high-risk, non-standard investments. Some of these have since become illiquid, which means they can’t currently be sold or traded”.
The FSCS declaration of “default” has triggered FSCS payouts for successful claims relating to Liberty SIPP’s failure to carry out relevant checks on their investments and in relation to what information their clients were given. FT Adviser reports that the FSCS has already paid out over £5.8 million in compensation.
Financial Mis-Selling Specialists
Working on a ‘no win – no fee’ basis, TLW’s experienced team can help you through the FSCS compensation process. Our clients are reassured by our knowledge and experience of FSCS procedures and, indeed, we have had FSCS claims successfully upheld for clients whose claims had previously been refused on purely technical grounds. Find out more about FSCS claims here.
TLW Solicitors Can Help
If you are concerned about yours, a friend, or a loved one’s investment in Liberty SIPP Limited, please get in touch with TLW Solicitors today by calling 0800 169 5925, email email@example.com or complete the call back form below.
Time limits can apply and so anyone wishing to bring a claim should do so without delay.
For added TLC, think TLW Solicitors.