How were SIPPs Mis-sold?
If any of the following applies to you, it is likely you were mis-sold and could possibly claim for SIPPs compensation.
- A lack of understanding - If you were new to investing and did not understand the process or investment that you were advised on.
- Hard sales or pressure selling - Where you felt uncomfortable or pressured into an investment that you didn’t need or want.
- Given poor advice - If you were advised to switch, even though your existing scheme was more suitable to your current and future pension needs.
- Lack of transparency on fees - If you were not made aware of any management fees or additional costs attached to the investment.
- Were questions asked about you? - The product must be tailored to your demands and needs. Hence, did the adviser take detailed information about your personal circumstances? Did they establish the level of risk you were willing to take when investing?
- No advice given on the risks – If you were not informed of the high risks of unregulated investments or the potential unsuitability of putting property into a pension.
- Advised you could avoid tax - If your financial or pensions adviser recommended a SIPP as a means of tax avoidance.
- Financially worse off – Generally speaking, if any poor advice concerning SIPPs left you worse off, you may be able to make a complaint and receive SIPP compensation. The same would apply if the investment failed, after being given a guarantee of a financial return that didn't appear.
- Unregulated Investments - If you were advised to use your SIPP to invest in things like trees, store pods, overseas property or hotels, you may be in unregulated investments and have been unaware of it.
- Income Tax - Did your adviser tell you about the £40,000 tax free limit? If you exceed the annual allowance in a year, you won't receive tax relief -on any contributions you paid that exceed the limit and you will be faced with an annual allowance charge. The annual allowance charge will be added to the rest of your taxable income for the tax year in question, when determining your tax liability.