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Mis-sold SIPP claims explained
Can you make a claim for a mis-sold SIPP pension?
Self-Invested Personal Pensions can be a great way to save for retirement, or they can be an accidental trap to take your money and invest in high-risk investments that could reduce your pension to nothing.
It all depends on what financial advice your received and whether it was suitable and in your best interests…
At Get Claims Advice Ltd, we have a team of industry-leading SIPP claims specialists, who’ve recovered over £50 MILLION* from mis-sold SIPPs on behalf of our clients.
Finding out if you can claim all starts with a no-obligation phone-call: Our FREE Initial Assessment service.
What is a SIPP pension?
Self-Invested Personal Pensions (SIPPs) were introduced in the UK back in 1989, and were designed to allow some pension savers to take greater control over how their pension funds were invested.
They differ from more common private pensions and company pensions in that the pension holder can choose exactly what funds they invest their money into by giving instructions to their SIPP Administrator.
But with greater freedom often comes greater risk for those who aren’t 100% sure what they’re doing when it comes to investing…
What is the SIPP mis-selling scandal?
The mis-sold SIPP scandal has been going on for a while now, about 15 years in fact.
Each case is a little different, but the most common one is this:
- An ordinary man or woman, perhaps in their 40’s or 50’s, not particularly rich has a modest pension.
- He/She receives a cold-call from a company, offering a free pension review – a chance to see if they can make their pension generate more money before retirement – sounds good!
- He/She takes it, and the company introduces the idea of moving their pension to a SIPP to invest their money into an alternative scheme that they say will make much more than the existing pension.
- They introduce a financial adviser who’s job it is to see if it’s a good move, and make it happen.
- The transfer goes ahead, the marketing company receives commission from the SIPP provider or the Investment Company, and the Financial Adviser receives a fee for the advice.
- Time passes…
- Later, it is revealed that the investment is high-risk, unregulated by the watchdogs at the FCA, and has is now losing money. It might later go into liquidation, leaving the pension holder with nothing.
What about SIPP claims?
SIPP Claims are a way to fight back for many people who have been mis-sold their SIPP and investments.
They are claims made against the negligent advice or actions of one of the firms involved in the pension transfer, switch or investment – usually the Financial Adviser.
There are different types of SIPP claim depending on the circumstances – some claims are made straight to the Financial Adviser, or to the Financial Ombudsman Service (FOS), or to the Financial Services Compensation Scheme (FSCS).
Depending on the case, claims have been awarded some or even all of the money lost because of the mis-sold SIPP.
SIPP claims on the rise
As more and more people realise they have been mis-sold their SIPP pension, claims have been rising year on year.
In 2017/2018, the FSCS paid out £112 MILLION to people who had been mis-sold SIPP pensions, and is currently looking to fund next year’s increase.
The Ombudsman, too, saw a 76% rise in SIPP related complaints between July and September 2017, when compared to 2016.
Greater awareness about SIPP mis-selling and the pure number of mis-sold SIPPs is believed to be driving the increases.
Who can make a mis-sold SIPP claim?
It all comes down to how you may have been mis-sold. Every story is a little different, but if you moved to a SIPP pension and invested in high-risk, non FCA regulated investments then this could be because of the negligence or greed of a financial adviser or SIPP company, and it could be that you have a claim.
That’s part of what we do at Get Claims Advice, investigating and mapping out how an individual has ended up in the situation they are in, whether they appear to have received good advice or not, and working out whether a claim can be made.
How can I find out if I can make a SIPP claim?
Our FREE Initial Claims Assessment service can be a great place to start your SIPP claims journey.
We’ll put you in touch with a SIPP Claims Specialist who will guide you through an initial investigation to see if you’ve been mis-sold.
We’ll let you know if we think you’ve been mis-sold and the basics of how, and then you’ll have a choice:
- Go your own way
- Take a Full assessment with Get Claims Advice to see if you can make a claim on a No Win – No Fee Basis.