Following a number of “binding decisions” from the Financial Ombudsman Service, the SIPP provider was told that it was insolvent based on the number of potential claims relating to “high-risk non-standard investments”.
It was advised that it should enter administration to provide protection for creditors including former customers.
The FCA said: “If you are a former customer of Liberty, the administrators will be writing to you shortly to explain what this means for you and what action you should take. If you do not receive a letter from the administrators in the next 10 working days, you should contact the administrators.”
The Financial Services Compensation Scheme (FSCS) also announced that, as a result of the administration, it is now accepting claims against the firm.
The FSCS said: “We’re 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, which means they can’t currently be sold or traded.”
The Liberty SIPP Limited business and customer assets were originally sold to EBS Pensions Limited, part of the Embark Group, in October 2018.