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Approx. £6m FSCS payouts in Liberty SIPP claims

Approx. £6m FSCS payouts in Liberty SIPP claims

According to the FSCS (Financial Services Compensation Scheme), there has been an approximate pay out total of more than £5.8m in compensation to 187 Liberty SIPP pension claimants.

Liberty SIPP collapsed in April 2020 and its administrators have charged £347,328 to wind up the firm so far.  The business went into administration due to a large number of high-risk non-standard investments, which therefore increased the number of claims.

At one point Liberty SIPP traded well, with a turnover of £2.9m and a profit of £371,000 recorded in the year ended 31 March 2018. It grew to have more than 13,000 customers and customer assets worth over £3.5bn, but its profit margin reduced to nil and losses of £95,000 were recorded to the year ended 31 March 2020.

All 187 claims are SIPP claims and approximately 35 claims have been rejected so far.  This cohort represents 10% of the 1,860 claims the FSCS has received in total, 1,500 of which are still being assessed.  The vast majority of these are pensions related claims and will be broken down into more precise categories further down the line such as SIPPs and personal pension transfers.

Money Marketing understands the payments started a couple of weeks ago just after the FSCS declared the firm in default.

In February 2021, High Street Solicitors have settled a number of Liberty SIPP cases which in total has recovered the sum of over £72,900.00 in compensation via the FSCS. 

If you think that you’ve got a claim against Liberty SIPP Ltd, get in touch with a member of our team today.