Frank Field, who currently chairs the Work and Pensions Select Committee has spoken out about what many consider to be a HUGE part of the pensions mis-selling scandal: Unregulated pension introducers that lead people into potentially unsafe, unsuitable or even “scam” pensions.
What are unregulated pension introducers?
You know those cold-calls you probably get asking if you’d like to review your pensions? Well, they very rarely come from a regulated financial adviser – usually a marketing firm who get paid commission to introducer people to pensions and investments, and are therefore often biased in the information they present (it’s how they get paid!).
We know from experience that while many claim to offer a “Free and impartial pension review”, they are often paid a lot of money to promote high-risk and unregulated investments, often through SIPPs (because you can invest in almost anything through a SIPP).
Some may use a financial adviser to “sign-off” or occasionally genuinely advise on the suitability of a transfer or investment, but generally the end goal is to make a transfer and investment happen, as they are often paid little or nothing otherwise.”
What Frank Said
Speaking to Citywire, Frank Field alluded to the situation with the British Steel Pension Scheme as the “worst aspect of pension freedoms”, and that the FCA had to do more to stop bad advisers starting up new companies after their old ones get shut down (phoenixing).
But his main point appears to be that the FCA had to act “bravely and resolutely”, and consider BANNING unregulated introducers.
Think You May Have Been Mis-sold?
If you’ve lost money or have been put at risk by a pension transfer, we want to hear about it. Just use the form below to get in touch to see if you have been mis-sold, and for details on how to make a claim!