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Mis-sold SIPPs – Liberty SIPP Goes into Administration

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The SIPPs mis-selling scandal has been going on for years now, with increasing numbers of customers making claims against the firms they invested with. Liberty SIPP Ltd is the latest company to be caught out by the FCA and has now gone into administration.

Here’s more information about the situation.

Why have Liberty SIPP gone into administration?
The decision was made after Financial Ombudsman Service advised Liberty SIPP to declare itself insolvent. This advice was based on the volume of potential claims due to be made against the company, relating to their mis-selling of high-risk investments.
Administration was the logical step to take, as it would offer creditors some protection, and former customers too.
The FCA announced on April 28th that the firm was in administration, and that Alex Cadwallader and Andrew Poxon would be acting as joint administrators.

Where did the company go wrong?
Liberty SIPP’s business and customer assets were sold to EBS Pensions Ltd (Embark Group) back in October 2018, and their SIPP rebranded (from ‘Liberty’ to ‘Option’). The actual legal entity of Liberty SIPP Ltd was not included in this sale, which meant that it held on to its liabilities. That means they’re still responsible for providing compensation for the assets they retained.
Unfortunately for them, the complaints were already arriving in 2018, and have continued to do so ever since. In August 2018, the Financial Ombudsman Service stated that they’d already received over 500 complaints about the company, from customers who had lost substantial sums of money after being recommended Liberty’s high-risk investments.

What can Liberty SIPP customers do?
By now, former Liberty clients should have all received communication from the company’s administrators, explaining what impact this process will have in the future. This letter should also recommend a course of action; though you’re not under any obligation to follow their advice.
If you haven’t received this letter, it’s recommended that you contact the administrators via their website.

Seeking compensation
Even though Liberty SIPP Ltd have gone into administration, you can still make a claim against them. You can contact the Financial Ombudsman Service direct or get in touch with our team. We’ve been following the case carefully, and we can help you get the compensation that you’re owed.

Can you make a claim?
If you’re unsure whether you were mis-sold a SIPP from Liberty SIPPs, below are some common signs of mis-selling:
-    Too high-risk. Your attitude to risk wasn’t assessed properly, and you were sold an investment product that was too risky for you.
-    Lack of questions. You weren’t asked about your unique circumstances, which means the product may have been unsuitable for your needs.
-    Pressure. You were pushed into investing in a SIPP, when another option might have been better.
-    Lack of information. The SIPP (and the risks involved) weren’t properly explained to you.
For further examples of mis-sold SIPPs, click here.

If the above sounds familiar, it’s time to take action. You may be entitled to thousands of pounds in compensation – and we are here to help you claim the money that’s rightfully yours. To get started, contact our expert team on 0808 163 1659 or email enquiries@goodwinbarrett.co.uk.

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