Mis-sold SIPP Pension Transfer Claims

Many innocent hard working savers were sold high-risk investments by marketing companies, their IFA (Independent Financial Advisers) or pension providers that have subsequently failed or not performed as described. The Financial Conduct Authority (FCA) found that many of them did not receive suitable advice and may have been a victim of pension mis-selling.

A recent FCA review into pension transfers and switching found that more than a third of people who transferred their pension did not receive suitable advice. ‡ source - FCA announces changes to advice on pension transfers

If you invested your pension into a SIPP (self invested personal pension) and have seen the value of your pension fund drop because the investment hasn’t produced the expected or promised returns you may have been mis-sold. If you were affected and are concerned that you may be a victim of pension mis-selling, you may be able to make a compensation claim against a financial adviser, pension provider or pension scheme operator for your loss.

If you believe you have been a victim of mis-selling, look at our SIPP claim process information on how you can find out for sure.

What is SIPP Mis-selling?

SIPP stands for Self-Invested Personal Pension and is a type of investment product that allows you, the investor, to have better control and flexibility of what to invest your pension fund in, compared to standard pensions. As they offer a wider choice of where to invest your money they are better suited to those who have larger funds to invest.

To invest in a SIPP, you can either rely on the advice of a financial adviser or if you are comfortable with and are experienced in making investments, you can do it yourself.

Problems arose when financial advisers recommended investors put their money in high-risk investments via SIPPS without explaining the associated risks. For some, the results meant heavy financial loss.

A financial adviser usually selects SIPP investment funds on their clients behalf and has a duty to ensure that the funds chosen meet their needs and objectives and are aligned with their clients attitude towards risk.  However, some financial advisers have placed a client's funds into riskier investments without their client having a full knowledge and understanding of the dangers involved with such action. This practice has resulted in the client making substantial losses in their pension fund and facing financial difficulties during the retirement.

Typically, mis-selling is related to investors being given poor or misleading advice as to what investments were relatively safe and suitable for the needs of their clients.

How SIPP's were Mis-sold?

  • You were encouraged to change your investment(s) without a proper explanation of the reasons why you should be doing this.
  • At no time did your financial adviser make you aware that your funds were being invested in an unregulated investment.
  • You were assured that your SIPP pension value would increase by your financial adviser but has fallen.
  • You were not properly informed of the factors which could result in a reduction of the value of investments
  • You felt uncomfortable or pressured by your financial adviser into an investment that you didn’t need or want.
  • Your financial adviser did not properly assess your financial situation by carrying out a fact find exercise.
  • You feel that you were given poor advice by your financial adviser concerning SIPPs which has left you financially worse off.
  • No Information about exceeding the £40,000 tax-free limit making you liable for the 55% income tax was explained or given to you.

Consequences of SIPP mis-selling

The mis-selling of SIPP investments has resulted in significantly reduced pensions funds, and the prospect of serious financial strain during retirement. According to FCA reviewinto pension transfers and switching found that more than a third of people who transferred their pension did not receive suitable advice. So although it may feel like it, you’re not alone.

Which organisations Were involved in SIPP investment losses?

There have been many cases of serious and ongoing failings by financial advisers dealing with SIPP investments. These have primarily been to do with the safety of the SIPP investment and their suitability in meeting the investors’ needs.

Where advisers have mis-led investors, not fully disclosed the risks involved or failed to notify any conflicts of interest, the FCA has taken disciplinary action and fined those involved. An example is Tailormade Independent Ltd who encouraged investors to pay into unregulated investments via SIPPs without disclosing that there were conflicts of interest.  Many investors lost most of their investment funds as a result.

Tailormade Independent went into liquidation and three directors banned from holding such posts in the financial industry.

Which high-risk & unregulated investment products were Mis-sold?

If your SIPP investments include the following products, you are urged to get in touch for a FREE mis-sold SIPP claim assessment :

  • Insurance company funds
  • Investment trusts
  • Off plan properties
  • Overseas land and property (including investments handled by property firm Harlequin which has been liquidated.)
  • Quoted UK and overseas stocks and shares
  • Resort developments
  • Store Pods
  • Traded endowment policies
  • Unit trusts
  • Unlisted shares
  • Wine

Latest SIPP Mis-selling News

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