The issue of mis-sold SIPPs is an ongoing problem in the UK, with thousands of investors losing significant amounts of money as a result. However, some consolation is that people are now receiving compensation for their financial losses.
It is likely that those who are involved in the Liberty SIPP mis-selling situation will be able to claim compensation as the provider has now been declared in default by the FSCS.
Liberty SIPP was performing well in 2018, with impressive profits and a high turnover of £2.9 million. At its best, the company had more than 13,000 customers, with combined assets that were valued at over £3.5 billion. In October 2018, the company was sold to EBS Pensions Ltd, which is part of the Embark Group. This was when Liberty SIPP was provided with a new name, the Option SIPP.
At this point, it seemed like things were going well for the company. However, this only made it more surprising when complaints began to surface. There are now 1,696 claims that have been made against Liberty, relating to either the SIPP itself or the pension advice that was provided in relation to the SIPP. Liberty officially collapsed in April 2020, as a result of the large number of complaints being levelled against it.
Most of the complaints raised against Liberty SIPP were regarding the high-risk nature of the investments held within the SIPP accounts, which led to clients losing significant amounts of money. Clients often felt that they were not suitably informed of the risk or offered good advice about transferring their existing workplace pensions.
Now that Liberty SIPP is in default, compensation can start being paid out to affected customers.
At present, there has not been any information on exactly how much compensation will be paid out, or who will get it. Liberty SIPPs administrators published a statement in December 2020, saying “at this stage, we are not in a position to provide any guidance on how the FSCS will update its policies in light of both the rulings as to what compensation may and may not be paid. The decision remains with the FSCS and is currently ongoing.”
The following are the most common signs that you have been mis-sold a SIPP.
If this sounds like your situation you might have been mis-sold a Liberty SIPP and could be eligible to claim compensation for your losses.
Our team of investment claim experts has extensive experience in handling cases of mis-sold SIPPs. We can help with your complaint and claim against Liberty SIPP to give you the best chance of getting the compensation you deserve.
Contact us today for a free, no-obligation assessment of your case.
Where multiple people have received negligent or fraudulent pension advice from the same professional advisor/company, we can help them to recover their losses collectively. Group actions can be a powerful tool and can have a bigger impact than a single claim.
CONTACT US TO DISCUSS A PENSION MIS-SELLING GROUP ACTION CASE