SIPP  

Liberty Sipp ordered to pay after Ssas due diligence failure

Mr Arter found the Ssas was registered to Dawson Metals based in Romford, whereas Mr E lived in Hereford, something which Liberty Sipp should have questioned.

Another red flag was that the pensions administrator running the scheme was not authorised by the Financial Conduct Authority.

Mr Arter said: “It was Liberty’s responsibility to put Mr E in a position where he could make an informed decision and it failed to do so.”

Therefore he upheld Mr E’s complaint and ordered Liberty Sipp to pay £18,500 back into Mr E’s Sipp as well as compensate for any loss of investment opportunity.

In December 2018, TPR appointed Dalriada Trustees to take over the trusteeship of the Dawson scheme to see whether it could recover any of the monies lost.

Liberty Sipp entered administration last month (April 27) after it struggled to deal with a number of decisions against it from the Financial Ombudsman Service.

It is expected that hundreds of claims will now land at the Financial Services Compensation Scheme as affected clients seek up to £85,000 in redress.

The Liberty Sipp Limited business and customer assets were sold to EBS Pensions Limited, part of the Embark Group, in October 2018, which then rebranded the Liberty Sipp as the Option Sipp.

However, the legal entity Liberty Sipp Limited was not part of the sale and retained its liabilities. It consequently had to pay out against any complaints using the assets it held.

amy.austin@ft.com

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