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.