Did you know that pension mis-selling may be the next big scandal facing the Financial Sector in the United Kingdom? A Financial Lives Survey conducted by the Financial Conduct Authority, showed that one in eight people who received financial advice in the past 12 months claim that an adviser mis-sold them an investment or pension product at some point.
Pension-related complaints have dramatically increased and some IFAs and banks have already incurred hefty fines. It could be that you too have been mis-sold a pension and you’re eligible to claim for SIPPs compensation. Here are all the essential details you need know about mis sold sipp and how you can make a successful claim.
What exactly are SIPPs?
SIPP stands for Self Invented Personal Pension. It is a type of pension savings that gives you more control over just what happens in your pension pot. SIPPs were launched back in the 1990s to allow individual savers to play a more active role in deciding where their money is invested. SIPPs may buy, sell or hold a wide range of investments including, stocks and shares, offshore funds, real estate investments, gilts, bonds, commercial properties and many more. They were recommended for use by seasoned investors.
SIPPs can potentially deliver higher growth, but many factors, such as charges must first be taken into consideration before making an investment. Unfortunately, people have been sweet-talked into making high risk investments through their SIPPS, investments that prove almost impossible to sell and so no actual value can be redeemed from them.
How do Mis-Sold SIPPS Arise?
Usually this mis-selling starts with an adviser telling you about a fantastic opportunity you can’t miss such as when advisors sold the dream to clients about getting a 10% return on trees in the amazon rain forest through the ethical forestry scheme. They will promise you very high returns in the first couple of years, which is not true. Most advisers advise savers to switch to SIPPs so they can gain additional commissions. What’s even more alarming is that advisers may encourage you to pay your retirement savings into investments abroad, which have subsequently dissolved, making you lose large amounts of money. If you believe you have been tricked by your SIPP adviser, you may be eligible to make a mis-sold SIPP claim.
Mis-Sold Claim: How to Know you are Eligible
If you have lost your money in a SIPP investment, chances are that you have been mis-sold. You may be qualified to make a mis-sold SIPP claim if any of the following applies:
- Poor Advice: Where your existing scheme was more suitable but your adviser convinced you to change it.
- Hidden charges and fees: If there were hidden charges and fees attached to your investment product.
- Pressure selling: Where your adviser pushed or pressured you into making an investment you never wanted.
- Lack of understanding: If you were advised to make an investment, which you never understood clearly.
- Tax Avoidance: Where your adviser recommended the investment so as to avoid tax.
- High Risk: Where your adviser never informed about the high risks involved in the investment
How to Make a Mis-sold SIPP Claim
If you have lost or stand to lose a lot of money in a SIPP investment, then it is advisable that you make a SIPP claim. A mis-sold SIPP claim is usually made against the adviser who gave you the advice. It can also be made against the SIPP provider.
SIPPs are complex products, and thus the claim may not be straight forward. So, it is highly advisable you hire an experienced claims expert to help you through the claim process. Even though each mis-sold SIPP claim is different, you can be sure that your case will be handled professionally.