If you’ve transferred your pension off the back of a Cold-Call, then the chances are you spoke to an unregulated pension introducer – a marketing firm set up to introduce people to the idea of a “Free Pension Review”, a new Financial Adviser, or a new Pension Investment or Provider.
The problem is, some unregulated pension introducers had a habit of recommending certain financial advisers and certain investments that meant people ended up in unsuitable pensions schemes – often SIPPs (Self-Invested Personal Pensions) with high-risk investments that exposed them to too much risk, sometimes meaning that people lost big money from their pensions…
The Role Of Unregulated Pension Introducers
Back in May 2016, Get Claims Advice passed comment in the media about the growing role of introducers in the developing mis-sold pensions crisis, on that occasion in relation to an unregulated forestry investment that went into liquidation.
But those firms weren’t the only ones at work, from big marketing companies with glossy investment brochures to ‘boiler room scams’, there are (and have been) plenty of unregulated pension introducers contacting ordinary people from here in the UK and from abroad, with big commissions available for those successful ‘salesmen’ who are able to get some big pension transfers on the hook, usually starting with that innocent-enough “Free Pension Review”…
In a warning to pension advisers in November 2017, the Financial Conduct Authority said of Unregulated Introducers; “We have seen instance where the referral from the introducer is made with a clear investment desire expressed by the customer and documentation already completed”
“In accepting business from an introducer, a principal must meet its regulatory requirements as set out in our handbook” – that means no shirking the responsibilities of unbiased, transparent and suitable financial advice!
Most of the clients we have here at Get Claims Advice who originally dealt with an unregulated pension introducer ended up in a SIPP with some pretty risky, non-standard investments, and if you did too, then our advisers are waiting to chat!