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Home / FCA probes SIPP providers about number of non-standard investments – what does it mean for your pension?
What is a non-standard asset? Categories: DFMs FCA Finance News Investments SIPP Claims
Luke Sharman AuthorPerson

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Has high-complaints driven the FCA to weigh up options about mis-sold pensions?

  • Regulator asks SIPP providers to show their cards
  • Non-standard investments focal point on investigation
  • What IS a non-standard Investment?
  • Could you be effected?

The Financial Conduct Authority has asked all providers of Self-Invested Personal Pensions (SIPPs) to reveal the details of any non-standard investments they hold in their SIPP accounts, AND how these investments ended up with them!

The move, which follows on from a similar enquiry a few years ago, includes any non-standard investments that may have ended up in SIPPs as part of a DFM portfolio.

What is a Non-Standard Investment?

A textbook example of a non-standard investment would be one that is difficult to value accurately, and difficult to release (sell out of) within 30 days. This means they are a bit more “illiquid” that normal assets, which can generally be bought and sold at will (think cliché stock market films – BUY BUY BUY, SELL SELL SELL!).

Because they are difficult to value and slow to sell, they are considered to be high-risk, and therefore in terms of financial advice, not suitable for every Joe Bloggs on the street. If you’re worried, we published a list of high-risk investments on our website, although the list is by no-means finished!

Why is the FCA bothering?

Well, over the past 6 years there’s been an almost ever-increasing number of complaints from clients who ended up with non-standard, high-risk investments in their SIPPs, many of whom have lost big money.

To put it into perspective, £105 MILLION was paid out in the year 2016 – 2017 by the FSCS in cases related to mis-sold SIPPs, and to date, Get Claims Advice has been responsible for over £23 million* worth of payouts for the same sort of thing!

With figures like that, it’s difficult to call it anything less than a scandal – one the FCA is aware of.

Could you be effected by SIPP mis-selling?

Well, question one is simple: Do you have a SIPP?

If you do, then do you know what sort of investments are in it? Looking back, do you feel like they were pushed on you a bit? Have you ended up in non-standard investments without realising it?

The team at Get Claims Advice deal with mis-sold pensions everyday, and offer a FREE and NO OBLIGATION assessment of your pension transfer and investment to see if you have been mis-sold.

If you have, you may be able to make a claim on a NO WIN – NO FEE* basis, just like hundreds of other clients over the past few years who we’ve helped win their money back.

Tags: DFM FCA Non-standard investments sipp

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