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Embattled Sipp provider reports profit as claims swirl

Liberty Sipp, which is facing claims over unregulated investments, has reported a nearly 20 per cent increase in pre-tax profit.

Money Marketing reported in May law firm Anthony Philip James & Co says it has up to 700 investors who allege they have suffered significant losses as a result of unregulated pension investments through the provider.

The firm is facing at least 30 cases in which investors allege it was responsible for the misselling of Sipps between 2011 and 2013.

Also in May, Wixted & Co Solicitors issued a case in the Circuit Commercial Court in Bristol against Liberty Sipp.

There, a group of 27 investors is taking action against Liberty Sipp over allegations it was responsible for losses incurred from risky investments.

In its annual results, Liberty, which has £2.95bn of assets under management, reported pre-tax profit of £506,000 in 2017/18, which was a 19 per cent increase on the previous year.

Liberty administers 12,800 Sipps and works with 745 advice firms across the UK

Liberty sales and marketing director Matthew Rankine says: “As fees have come down, Sipps have become a more mainstream product.”

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There are 3 comments at the moment, we would love to hear your opinion too.

  1. The results simply paper over the ever widening cracks developing for Liberty. If Liberty had stuck to their commitment passing on all interest to SIPP members rather than taking 0.5%+ as their cut, the business would probably be making a loss.

    Liberty reportedly have hundreds of members waiting in the wings to make compensation claims for tens of millions as a result of failed non-standard investments accepted by unregulated introducers, so I hope they have a supportive PI insurer??? I wonder how transparent they have been in terms of their risks (hmmmm!!!).

    If I was an adviser with clients holding Liberty SIPPs, I’d be looking for an alternative secure provider urgently rather than holding tight in the hope that Liberty survive the avalanche of claims heading their way. Unlikely in light of the latest FOS determination.

  2. Its normal to make an allowance for contingent liability in the account albeit this would be an omission of guilt

    Guessing the shareholder will be having a nice dividend this year to take out the cash while its there

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