In early 2021, Liberty SIPP was placed into default by the Financial Services Compensation Scheme (FSCS) which then started paying out on successful claims against the firm.

 

Liberty SIPP was placed into default after a large number of claims were made against them due to high-risk non-standard investments. Liberty SIPP facilitated investments into products such as Ethical Forestry, Global Plantation, Gas Verdant, Sustainable Agro Energy, Invest US and Gravity Child Car Limited, which are all unregulated products. Since investments were made into products such as this; they have become illiquid meaning clients can now not access their money and the investment can neither be sold or traded.

 

The firm failed to carry out the necessary due diligence checks on these high-risk investments before adding them to its SIPP portfolio. Liberty SIPP also accepted business from unregulated introducers who were not authorised to give pension and investment advice to clients. Liberty SIPP should have checked and known this before they accepted the investments and transfers.

 

When clients invested with Liberty SIPP they were subject to hard selling tactics. They also weren’t made aware of the risks involved, fees and charges or advised that the investments were unregulated.

 

If you have been involved with Liberty SIPP you may be due up to £85,000 compensation. Please fill in our free online form to see how we can help you.