UK Financial Services Compensation Scheme accepts claims against Liberty SIPP
Although FSCS is accepting claims against Liberty SIPP, claims will not immediately be passed to the claims processing teams for assessment.
Liberty SIPP Ltd has failed and was placed into administration on April 27, 2020, the UK Financial Services Compensation Scheme (FSCS) has confirmed. As a result, FSCS is accepting claims against the firm.
The Scheme is aware that FCA-authorised independent financial advisers recommended many Liberty SIPP customers transfer their existing pensions into a Liberty SIPP. Other customers made arrangements to transfer their pensions through unauthorised firms. After the transfer, many customers had their pension funds placed in high-risk, non-standard investments. Some of these have since become illiquid.
If you were advised by an FCA-authorised adviser that is still trading to transfer your existing pension or to invest through a Liberty SIPP, you need to complain to them before FSCS can consider your claim against Liberty SIPP Ltd.
If your adviser rejects your complaint, you can take your complaint to the Financial Ombudsman Service (FOS).
But if you were advised by an FCA authorised adviser that is now not trading to transfer your existing pension into or invest through a Liberty SIPP, you should submit a claim to FSCS against your financial adviser.
Although the Scheme is accepting claims against Liberty SIPP, claims will not immediately be passed to the claims processing teams for assessment. First, FSCS needs to make sure whether there are protected claims against Liberty SIPP. For this to happen, the body needs to know that Liberty SIPP owes a civil liability to customers that would enable them to sue the firm in court.
FSCS is working closely with the firm’s administrators and is investigating the practices of Liberty SIPP, specifically seeking to establish what levels of due diligence were carried out by the firm, before allowing customers to make specific investments under their pensions.