Collapsed self-invested personal pension (SIPP) provider Liberty SIPP has received 1,696 claims against it, according to the Financial Services Compensation Scheme (FSCS).
According to a note published on Monday (25 January), the claim-embroiled SIPP provider officially failed this week after going into administration on 27 April last year following a number of high-risk non-standard investment claims against it.
The FSCS said that no compensation has been paid out towards these claims yet.
After the transfer, many customers had their pension funds placed in high-risk, non-standard investments."
The note 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."
It continued: "Some of these have since become illiquid, which means they can't currently be sold or traded."
At the time of writing, the Financial Ombudsman Service showed 11 decisions against Liberty SIPP, all of which were upheld.
In April 2020, the company was advised it was insolvent based on the number of claims against it and advised to enter administration to protect any creditors, including former customers.
At the time, the Financial Conduct Authority said potential claimants will still be able to claims against Liberty SIPP, but those claims would go straight to the FSCS.
Andrew Poxton and Alex Cadwallader of Leonard Curtis were appointed as joint administrators of the business.
Later that year, a trial date against the failed SIPP provider was set for September. A statement of administrator's proposal was uploaded to Liberty SIPP's Companies House page which contained details about the firm's collapse and ongoing claims against it.
This article was first published by our sister title Professional Adviser