What Is a Mis Sold SIPP?
Mis-selling is a situation where a Self Invested Personal Pension (SIPP) is inappropriately or deceitfully promoted or sold to individuals. Financial advisors or firms may fail to properly assess an individual’s risk tolerance, investment knowledge, and financial goals. This often results in losses due to unsuitable investments or inadequate disclosure of risks.
What Exactly is a Self-Invested Personal Pension Scheme?
A Self-Invested Personal Pension is a type of pension plan in the UK that allows individuals to manage their investments, providing flexibility and control over retirement savings. With a SIPP, investors can choose from a wide range of investment options, including stocks, shares, bonds, funds, and commercial property.
SIPPs were introduced to fill a gap in the market where a small number of pension holders wanted more control over their investments.
However, they may not be suitable for everyone, and professional financial advice is essential for making informed decisions. SIPPS are best suited for those with financial knowledge, a tolerance for investment risks, and the desire to actively manage their pension investments.
What Are 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 compensation.
Non-standard investments are often put into SIPPs, in order to generate huge commissions for the advisors, even if it is to the detriment of the pension holder. These mis-sold SIPP investments can include:
10-year property bonds
Hotel or car park schemes
Have You Been Mis Sold a SIPP?
If you have invested in a Self-Invested Personal Pension (SIPP) and feel dissatisfied with the outcome, you may have been a victim of mis-selling.
Mis-selling occurs when a financial product, like a SIPP, is recommended or sold to individuals without proper consideration of their financial needs and circumstances, leading to potential financial losses and misaligned expectations.
Although the financial industry has strict regulations in place to protect consumers, not all advisors adhere to these standards. By using a regulated financial advisor, you will have the right to complain if you have suffered losses.
For anyone looking into whether they qualify for mis-sold SIPP claims and possible compensation, it is important to know what constitutes a mis-sold pension.
You may be eligible to make a claim for compensation if:
- You were given bad advice. The pension advice you were given by the financial advisor or SIPP provider was negligent and unreliable.
- Your advisor didn’t explain the risks to you. There was a lack of proper disclosure about the potential risks associated with the investment, which led to financial losses and misaligned expectations.
- Your financial advisor failed to take your personal circumstances into account. Proper consideration of your financial needs, risk tolerance, and investment goals is crucial to ensure suitable investment recommendations. If you were encouraged to purchase an investment that carried more risk than you and your financial circumstances were prepared for, you may be eligible to claim compensation.
- You were not properly informed how your money would be invested. It is essential for investors to have a clear understanding of the investment strategy and potential risks involved. If this information was lacking or misrepresented, it could lead to financial losses and misaligned expectations.
- Your financial advisor didn’t conduct a ‘fact find’ to determine your financial circumstances or goals. A proper ‘fact find’ is essential to ensure that the investment aligns with your individual needs and risk tolerance. If this crucial step was neglected, it may have led to unsuitable investment recommendations and potential financial losses.
- Pressure Sales Tactics: You were pressured into investing your pension savings in high-risk investments or a SIPP that didn’t align with your financial situation or individual needs.
- Hidden Costs and Fees: Additional costs and fees associated with your SIPP investments were not transparently disclosed, leaving you surprised and financially burdened.
Why The Increase In SIPP Mis-Selling?
We are seeing a disturbing number of cases where clients have been advised to transfer their workplace or defined benefit pension scheme into a SIPP and thereafter invest in completely unsuitable products or high-risk investments.
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.
In recognition of this growing problem, the Financial Services Compensation Scheme (FSCS) has set aside a £120 million compensation scheme for victims of SIPP mis-selling.
Why Contact Pension Justice?
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 with your SIPP claim every step of the way and fight for the compensation you deserve.
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 SIPP claims, please get in touch with Pension Justice today, and a member of our dedicated team will ensure you immediately receive specialist advice and assistance.
Our dedicated team of specialists is here to help you through the entire process, so you can get the compensation you deserve without the stress.
We’ll take care of filing your SIPP complaint with your advisor or provider and handle all the paperwork and procedures to keep things moving smoothly. Our experienced experts leave no stone unturned, ensuring all the essential details are covered to avoid any complications or claim rejections.
You won’t need to deal with the back-and-forth with your SIPP adviser or provider because we’ll handle all the communication for you. We aim to get your compensation to you as quickly as possible so you don’t have to wait around.
With our team in your corner, you can rest easy knowing that your mis-sold SIPP claim is in capable hands. Let us navigate the process for you while you focus on what matters most to you. Contact us today and take the first step toward getting the justice you deserve.
How Long Will The Claim Take?
Once you have contacted us about making a claim, we can get in touch with the firm in question, at which point they have eight weeks to respond. After this point, we can go directly to the Financial Ombudsman Service (FOS) and look to secure compensation in recognition of your mis-sold pension. We will look to complete this process as quickly as possible and will keep you fully informed at all times.