Have you transferred to a SIPP?
In recent years, many in the UK have received pension transfer advice that recommended they transfer their pension to a SIPP, often against their financial interests. Should you have been advised to transfer your pension to SIPP, you may be entitled to claim compensation for any pension transfer advice cost that was incurred.
What are self-invested pension schemes?
Self-Invested Pension Schemes (SIPP) were introduced to fill a gap in the market where a small number of pension holders wanted more control over their investments.
SIPPs were designed for experienced investors who perhaps had an interest in the stock market through experience with shares and unit trusts.
Unfortunately, the product has been abused by many Financial Advisors, resulting in the following:
- Small pensions have been transferred into these schemes and the charges make them less valuable
- Investments in unauthorised schemes have allowed advisors to be paid commission, even though such commission-based transfers were banned in 2006
- People who had no intention of doing so are now left managing their funds
We are seeing a disturbing number of cases where clients have been advised to transfer their pension into a SIPP and thereafter invest in completely unsuitable products. While these investments can be extremely damaging to the pension holder’s finances, they often pay excessively high commissions to advisors.
There have even been many instances where people have approached retirement only to discover that their investments were worthless.
Have you got Non-Standard Investments?
There are a range of different non-standard pension investments that have been offered over recent years in the UK. Many of these have ended up being mis-sold SIPP investments that could qualify for SIPP compensation. Non-standard investments are often put into SIPPs, which is done so in order to generate huge commissions for the advisors, even if it is to the detriment of the pension holder. These investments can include:
- Storage Pods
- Eco products
- Agri products
- Ethical forestry
- Overseas Property
- Chinese stock
- 10-year property bonds
- Overseas investments
- Hotel schemes
- Car park schemes
- Forex trading
- CFD trading
- Unquoted shares
- Preference shares
How do I know if I have been mis-sold a pension?
For anyone looking into whether they qualify for mis-sold SIPP claims and possible SIPP pension compensation, it is important to know what constitutes a mis-sold pension. A pension may have been mis-sold to you if one or more of the following situations apply:
- Your advisor didn’t explain the risks to you
- Your financial advisor failed to take your personal circumstances into account
- You were not properly informed how your money would be invested
- Your financial advisor didn’t carry out a ‘fact find’ to determine your financial circumstances or goals
- You were encouraged to purchase an investment that carried more risk than you and your financial circumstances were prepared for, such as being given SIPP pension advice that was not in your financial interests
For more information on mis-sold pensions, including having a SIPP pension mis-sold and being entitled to SIPP compensation, you can read our blog: Mis-sold SIPP Pension Transfer Advice
What should I do if I’ve been mis-sold a pension?
If you can relate to one or more of the bullet points above, you may be entitled to compensation. Anyone who believes they’ve been mis-sold a Self-Invested Personal Pension should get in touch with our team of specialists. Whether you’ve been duped by a 10-year property bond, or encouraged to invest in storage pods only to face high fees, we’ll help you every step of the way and fight for the compensation you deserve.
Our team are ready to discuss issues including cases of being advised to transfer pension to SIPP, transfer company pension to SIPP, as well as other instances of bad pension transfer advice that led to you suffering financial loss you may be entitled to claim compensation.
Here at Pension Justice, we’ll investigate your case, fight your corner, and do everything within our power to obtain compensation for financial losses incurred. For all of our claims, we operate a No Win, No Fee* service with no fees or charges unless your claim is successful, which protects your financial interests and gives you peace of mind that you will not suffer any further unnecessary financial charges.
To discuss any situation relating to mis-sold SIPP claims or bad advice relating to SIPPs, please get in touch with Pension Justice today and a member of our dedicated team will ensure you immediately receive specialist advice and assistance.
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Are you eligible for a claim?
- You were advised to transfer away from a Final Salary Company Pension.
- Your new pension was not compared to a low cost stakeholder pension.
- You were advised to transfer to a Self-Invested Personal Pension (SIPP).
- You were advised to invest in unregulated investments, e.g. store pods, overseas property, ethical forestry etc
- You were not given annual reviews, ongoing support and projections.
- You were charged ongoing servicing fees.