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Financial Advisers

Financial Advisers

Firstly, it’s important to understand that the Financial Conduct Authority regulates financial advisers. This means they are subject to strict codes of conduct and rules that ensure that clients are protected and treated fairly.

Secondly, the financial adviser can advise where to invest your pension.  Financial advisers need to consider the client’s needs and circumstances, as well as the level of risk the client is willing to take.

The majority of Financial Advisers do work in the best interests of their clients while strictly following FCA regulations. But some financial advisers don’t put their clients’ interests first and as a result put their clients at risk.

Mis-sold Pension Advice

Many financial advisers have recommended unsuitable Self Invested Personal Pensions in the last decade.  The SIPP mis-selling scandal was so abundant that it was referred to as a wave of pension mis-selling.

Such advisers fail in their duties to their client. Financial advisers must always act with the client’s best interests. Failure to do so breaches the strict rules as set out by the Financial Conduct Authority.

SIPPs are considered unsuitable pension products for people with little investment knowledge or experience. This is because of what’s involved with managing a SIPP, as well as the risks involved with the investments they contain.

In reality, some investments within SIPPs have little prospect of living up to the Financial Adviser’s word.

Many are high-risk, unregulated and generally considered unsuitable for the average retail client.

This is why successive governments have ensured – through the FCA – that Financial Advisers are banned from recommending unregulated Sipp investments to ordinary Pension Savers – people with limited investment experience.

But it’s not just SIPPs that have been in the spotlight. Mis-sold transfers from final salary/Defined Benefit pensions have been a hot topic.   It is a view that it is in the best interest of most consumers to stay in their final salary pensions.

These types of pensions are often described as ‘the gold standard of pensions’ because of their valuable benefits.

Yet some financial advisers have provided unsuitable advice to transfer final salary/ defined benefit pensions.  Thousands of these savers have lost their valuable pensions.  In 2021, the FCA wrote a total of 3,591 final salary pension transfer advice letters to customers to tell them they may be entitled to compensation.

Financial advice, especially regarding pension transfers and investments, can be a major contributing factor in pension mis-selling.

If you have received unsuitable pension advice from a regulated Adviser or firm you may be able to claim compensation.

What Should Financial Advisers Do?

As basic as it may sound, financial advisers should be acting with their client’s best interests. It’s a phrase that comes up all the time when measuring the conduct of a financial adviser.

Clearly, suggesting a Pension Saver pour their retirement savings into an unsuitable pension arrangement is not acting within their best interests. But this is what happens. What the financial adviser should do is look at various options on their client’s behalf, and suggest investments that suit their client’s needs, rather than their own needs.

If this sounds familiar, you are not alone. Thousands upon thousands of people in Britain have been in this position – and what’s worse, most don’t realise!

Do You Need Pension Claims Advice?

At Pension Claim Consulting, we can in most cases tell if you have been mis-sold a pension within a short time, and provide a quick assessment of your chances of winning compensation.

Compensation awards are capped at £85,000 if made through the Financial Services Compensation Scheme, and £375,000 if made through the Financial Ombudsman Service.

We offer a free initial check to assess whether the advice you received was suitable or negligent, and if you may have a case to pursue a claim for compensation.

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Important Information!

You are not required to use our services to pursue your claim. You can also seek further advice or shop around subject to any time limits within which a claim must be made.

It is possible for you to present the claim for free, either to the firm or person against whom you wish to complain or to the statutory ombudsman (Financial Ombudsman Service or Pension Ombudsman Service) or the Financial Services Compensation Scheme, whichever is applicable to your claim.