Investors have launched legal action against Liberty SIPP over allegations it cost them money through risky investments.

No win, no fee firm Wixted & Co Solicitors has commenced proceedings on behalf of the group of 27 investors at the Circuit Commercial Court in Bristol.

The case against Liberty SIPP relates to unregulated introducers Avacade, Anton Barr, S J Stone, PFR Services, Gravity Global Investments and Ethical Forestry.

It also concerns investments including Ethical Forestry Sustainable Timber Investments, Global Plantation Investments, Gas Verdant Investment, Sustainable Agroenergy and an investment into Gravity Child Care Limited.

Liberty SIPP has strongly denied the claims.

John Fox, managing director of Liberty SIPP, said: “We have recently been contacted by a claims management company claiming to act for a small number of Liberty SIPP clients.

“Such claims management companies have been targeting both SIPP providers and financial advisers for several years now. 

"Liberty refutes any suggestion that it has ever mis-sold investments, and will defend itself in the strongest terms from such false accusations.”

He added: “The claims relate to a few legacy clients who opened SIPPs with us between 2011 and 2013. 

“Liberty SIPP stopped allowing clients to invest in non-standard assets in 2013, and today more than 96% of the assets we have under management are in standard, regulated investments.

“As a SIPP provider, Liberty cannot offer financial advice or sell investments. So by definition we cannot mis-sell investments.”