Have you had a Mis-Sold Self Invested Personal Pension? (Sipp)
SIPPS are a kind of personal pension that allows you to hold multiple investments and products. This means you can grow your pension fund through these investments.
However, as employers do not make contributions towards SIPPS, many people lost much of their pension fund as a result of POOR ADVICE or CORRUPT ADVISERS.
Additionally, SIPPS normally attract high fees due to the flexibility and earning potential for investors.
As a result of the high fees earned from SIPPS, many advisers convinced savers to SWITCH to SIPPS purely to gain ADDITIONAL COMMISSION. Even more shocking is that SIPP advisers encouraged clients to pay their savings into investments abroad which have subsequently dissolved, with savers losing large amounts of money.
It is likely you were mis-sold if any of the following applies to you. This could mean that you are eligible to claim for SIPPs compensation.
- Lack of understanding- Where you were new to investing and did not understand the process or investment that you were advised on.
- Given poor advice- Where you were advised to switch, even though your existing scheme was more suitable to your current and future pension needs.
- Hard sales or pressure selling- Where you felt uncomfortable or pressured into an investment that you didn’t really need or want.
- Income tax implications- If you were not warned that exceeding your annual tax-free limit of £40,000 would result in you paying 55% in income tax.
- Advised you could avoid tax- If your financial or pension adviser recommended an SIPP as a means of tax avoidance.
- Lack of transparency on fees- If you were not made aware of any management fees or additional costs attached to the investment
- No advice given on the risks- If you were not given advice about the risky nature of investing in property and the potential negative implications.
More commonly, if any poor advice concerning SIPPs left you worst off, you may be able to make a complaint and receive SIPP claim compensation.
What is a SIPP?
A Self Invested Personal Pension (SIPP), is a personal pension scheme approved by the government. SIPPs were introduced in 1989, and since then more than a million UK citizens have used an SIPP to further their pension pot.
However, SIPPs are considered riskier than other types of savings as they rely on the success of where the money is invested.
Particularly risky investments included overseas investments, most environmental related investments and certain types of property. Sadly, SIPPs were widely mis-sold, and a great number of people have lost much of their hard-earned savings as a result.
In light of the SIPPs mis-selling scandal, the Financial Services Compensation Scheme (FSCS) have set aside £100 million to pay for compensation costs, where complaints are made about mis-selling.