Liberty SIPP Limited is associated with the landmark Financial Ombudsman Service case in which a client — Wayne Charlton — successfully complained that Liberty SIPP should have conducted proper due diligence before permitting his SIPP to invest in Sustainable Agro Energy, a fraudulent biofuel investment scheme in Cambodia. This case opened the door to FOS complaints against SIPP operators across the market.
Liberty SIPP Limited was an FCA-authorised SIPP operator that accepted a range of investments within its products. The firm became the subject of a landmark Financial Ombudsman Service decision when client Wayne Charlton successfully complained that Liberty SIPP had failed to carry out adequate due diligence before permitting his SIPP to invest £29,000 in Sustainable Agro Energy — a biofuel investment in Cambodia that turned out to be fraudulent.
The FOS found in Mr Charlton's favour, determining that Liberty SIPP should have identified the serious red flags associated with Sustainable Agro Energy before admitting it as a SIPP investment. This case is widely credited as having opened the floodgates for FOS complaints against SIPP operators who had previously argued that they were merely administrative vehicles with no responsibility for the investments their clients chose.
The Charlton FOS determination directly influenced subsequent litigation, including the Berkeley Burke judicial review [2018] and, ultimately, the Court of Appeal's decision in Fletcher [2024] EWCA Civ 541. Together, these decisions establish a clear and comprehensive framework for SIPP operator liability.
The correct route depends on whether the firm is still active, the nature of your loss, and whether FSCS compensation has already been paid on related adviser claims.
Check Liberty SIPP's current FCA registration status. If the firm is still active, submit a formal DISP complaint about the suitability of investments permitted in your SIPP and the due diligence Liberty applied to those investments.
Check FCA Register firstThe FOS has already upheld complaints against Liberty SIPP in the Charlton case. FOS adjudications on SIPP operator due diligence are well-established and Liberty SIPP has been found wanting at this hurdle before.
FOS precedent establishedIf Liberty SIPP or the IFA who recommended your transfer has been declared in default by the FSCS, compensation claims up to £85,000 per eligible person per firm are available.
If firm in defaultFor losses exceeding FOS award limits, civil litigation against Liberty SIPP and other parties in the advice chain can pursue uncapped compensation under the framework confirmed by Fletcher [2024].
Uncapped recoveryThe Charlton FOS decision against Liberty SIPP is a foundational precedent in SIPP mis-selling law. The FOS found that Liberty SIPP had failed to conduct adequate due diligence before allowing an investment in Sustainable Agro Energy — a scheme that exhibited clear indicators of being unsuitable, high-risk, and potentially fraudulent.
This determination established that SIPP operators cannot rely on the fact that a client has instructed the investment, or that the investment was recommended by an IFA, to discharge their own regulatory obligations. The operator has an independent duty to assess the nature of investments admitted to its products.
This principle was subsequently tested in Berkeley Burke SIPP Administration Ltd v FOS [2018] EWHC 2368 (Admin), confirmed by the High Court, and ultimately reached the Court of Appeal in Fletcher [2024] EWCA Civ 541, creating a coherent body of SIPP operator liability case law.
SIPP operator claims are subject to the same DISP and Limitation Act deadlines as adviser claims. FSCS claims must also meet prescribed eligibility windows.
DISP: six years from advice or three years from discovery. FSCS eligibility windows apply if the firm is in default. See redressadvisory.com/time-limits.
Redress Advisory assesses your position across all four routes and connects you with an SRA-regulated solicitor at no upfront cost.
Begin Your AssessmentYou do not need to use a claims management company to pursue a pension mis-selling complaint. You can complain directly to the financial firm, escalate to the Financial Ombudsman Service (FOS), apply to the Financial Services Compensation Scheme (FSCS), or instruct a solicitor independently — all free of charge. Using Redress Advisory does not improve the likelihood of success compared to pursuing a claim yourself, and our fee will reduce any compensation you receive.
Redress Advisory Ltd (Company No. 17295681) is a claims management company. Regulated legal work is carried out by our Operating SRA Partner solicitor firms. We are not a firm of solicitors and we do not provide legal advice.
The information on this page is for general informational purposes only. It does not constitute financial, legal, or claims management advice. Individual outcomes depend on the specific facts of each case. Historical outcomes in related cases are not a guarantee of results in your case.
FOS: 0800 023 4567 | FSCS: 0800 678 1100 | FCA Register: register.fca.org.uk