If you were contacted by a financial adviser telling you to move your pension into a sipp this was probably mis-sold to you. Many IFA’s did this to get more commission and actually invested your money in farm land in Australia or store pods and so on. If you think you may have been mis-sold, we can try to help you claim this back.
Bad investment advice compensation
Sipps (self invested personal pensions) are sort of like a personal pension that lets you have multiple investments, this basically allows you to manage your pension fund alone and have more control over where you invest your money, not all sipps are bad.
However, many people received a call from an IFA (independent financial adviser) who pushed the person to move into a sipp which is a very high risk thing to do. Sipps were created to allow seasoned investors the chance to take more risks as this brought about higher earning potential however, they should never have been a recommendation from anyone and especially not targeted to the general public. Because of this mounds of people lost a lot if not all of their pension fund because of corrupt advisers who have very poor advise.
So, the person may have had a nice low risk, safe pension with someone like NHS (UK national health), they then would have received a call or a knock on the door from an IFA who advised them that they should move there pension into a sipp. Sipps normally have very high fees because of the earning potential to the investor and the flexibility of the investment they mis-sold this product by telling the individual the following:
- There would be tax benefits
- They were very pushy in the advice leaving no room for the person to say no
- They did not advise of the high fees that can come with this
- Poor advise was given
- No fact find so the individual had a lack of understanding about the investment
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