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Liberty SIPP Pay Out Rises To Over £24.5 Million

Liberty SIPP Pay Out Rises To Over £24.5 Million

It has been confirmed today on City Wire that The lifeboat fund has now paid out £24.5m over Liberty Sipp after declaring it in default in January. The Financial Services Compensation Scheme (FSCS) had now paid out £24.5m in compensation over claims against collapsed Sipp provider Liberty Sipp.

Liberty Sipp was declared in default by the FSCS in January this year after falling into administration in April 2020. Prior to this, the assets of the Liberty SIPP book were acquired by Embark in 2018. 

Claims against the firm originated in 2018, due to the unregulated investments held including the Costa-Rican scheme Ethical Forestry. City Wire states that as at 3 June this year, it had received a total of 1,769 claims against Liberty Sipp and had paid out just over £24.5m in compensation, with over 2,903 clients being identified as having complaints against the Liberty SIPP.

These claims have risen due to clients being previously advised to transfer their existing pensions into a SIPP, with both firms being unregulated, via FCA-authorised advisers.

Many clients had their savings transferred into investments which were very high-risk and lacked suitability for the client. Some of these investments subsequently failed and therefore illiquid, which therefore means they cannot be sold or traded.

High Street Solicitors are acting on behalf of a number of claimants pursuing legal action against Liberty SIPP due to the negligent transfer advice previously provided. If you or someone you know requires our assistance in a matter similar to this, please do not hesitate to get in touch with us in order to pursue a claim to recover your losses.