The self-invested personal pension (SIPP) provider, Liberty SIPP Limited, has entered administration following a number of decisions from the Financial Ombudsman Service (FOS).

The Financial Conduct Authority (FCA) stated that the company was advised that it was insolvent based on the number of potential claims relating to high-risk non-standard investments.

The ombudsman ruled against the provider in a “landmark pensions decision” earlier this year, with 800 similar cases, representing a collective value of more than £31m, still underway.

The firm was subsequently advised to enter administration to provide protection for creditors, including former customers, with the remaining cases now passed to the Financial Services Compensation Scheme (FSCS).

APJ Solicitors professional support lawyer, Glyn Taylor, explained: “Claimants will be able to pursue their claims through the Financial Services Compensation Scheme (FSCS), where they will be able to potentially claim back up to £85,000.

“It’s likely that many clients will have lost more than £85,000, and as a leading firm dedicated to achieving justice for our clients who have been affected by the wrongdoings in the Sipp industry, we will be explore all avenues including Liberty Sipp’s professional liability insurance with the aim of securing maximum redress ”.

The FCA confirmed that the Liberty Sipp's business and customer assets were sold to EBS Pensions Limited, part of the embark group, in October 2018.

It also clarified that as the legal entity of Liberty Sipp Limited was not part of this sale, the firm no longer has any customer assets under administration.

Taylor, added: “It’s been a long journey for the 1000’s of Liberty Sipp clients affected, and APJ Solicitors has been seeking redress for more than 850 clients, who have had their financial security hanging in the balance for far too long.

“APJ predicted that many Sipp Investment firms would enter into administration with Liberty Sipp being the latest firm within the last six months, following Berkeley Burke and Guinness Mahon.

“As previously stated, we believe this to be part of a domino effect with more firms to follow, where firms accepted non-standard investments within the Sipp without undertaking proper due diligence on the investment as to whether the investment was appropriate for a Sipp."

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