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Mis-sold SIPPs

Billions of pounds have been lost through unregulated or high risk investments into Self Invested Personal Pensions.  Some believe it’s because a number of Financial Advisers, SIPP operators and Unregulated Introducers have abused the product, using them as a means to get pension money invested in high risk, unregulated investments.

Nearly always, such investments appear attractive, with “high returns and more control over your money”.  Overseas holiday developments, storage pods, green energy, diamonds and farmland.  All exciting projects to be involved with, especially when you see the glossy brochures showing stunning pictures and forecasts of how your pension will grow.

Harlequin Property, a development in the Caribbean, serves as a good example:

Financial Advisers persuaded hundreds of British Pension Savers to pour more than £400m into the scheme.  The scheme was to deliver 6,000 ‘stunning holiday apartments’ in the Caribbean. But only around 300 properties were built. The capital disappeared into thin air, leaving the Pension Savers with nothing more than their glossy brochures and collapsed pension pots.

 

SIPP Mis-selling

The most common chain of events of how mis-sold Sipp investments begin is also quite consistent. An introducer or agent will contact the Pension Saver offering a free pension review. If the Saver expresses any interest in their investment pitch (high returns, being in control), an introduction is made to the regulated Financial Adviser…the investments are then made.

Each year, we hear hundreds of stories of how people plough their life savings into unregulated investments within a SIPP. We also hear how people transfer their secure Final Salary Pensions to fund these high-risk projects. Losing your retirement savings in such a way is nearly always devastating, both financially and emotionally.

 

What is a Mis-sold SIPP?

A mis-sold SIPP is a pension product that is unsuitable for the client it was sold to or has been sold in a misleading way.

Most mis-sold SIPPs are unsuitable because the investments they contain are high-risk, unregulated and do not match the risk profile of the client.

Many mis-sold SIPP clients have been mis-led about the performance of the investments they contain. In many mis-selling cases, this is usually done by an Unregulated Introducer who cold-call people and uses a marketing tactic known as offering a free pension review.

This is designed to persuade people to transfer their pension, often promising high returns, but downplaying the risks associated with the investment.

The majority of investments associated with these SIPPs are unsuitable for the average retail client, and should only be recommended to people with a certain risk profile and investment experience.

 

Why are SIPPs not suitable for everyone?

SIPPs are not suitable for everyone because of the underlying investments they contain.

They are also unsuitable for people with little investment experience or who do not have the understanding and capacity for risks associated with this type of pension scheme.

However, many Financial Advisers have recommended SIPPs or facilitated transfers into SIPPs which have not been in the best interest of some of their clients.

Pension savers mis-sold a SIPP have their hard-earned money ploughed into unregulated investments, often for the investment to perform poorly, sometimes to the point where the entire pension fund is lost.

 

SIPP Complaints

SIPP Complaints made to the Financial Ombudsman Service totalled more than three thousand in 2018 and they are the most complained about pension product against Financial Advisers.

For mis-sold SIPPs alone, The Financial Services Compensation Scheme (FSCS) paid £123m in compensation in 2018 – 2019, £11m higher than the previous year.

If you were advised to invest into a Self-Invested Personal Pension without being prepared for the risks, you may be due compensation.

CLAIMING FOR MIS-SOLD SIPP

Mis-sold SIPPs are a scandal which has blighted the pension industry for decades. As the years roll on, more and more people realise they have been conned.

Pension Claim Consulting are specialists in winning compensation for mis-sold Sipps. Our clients can expect up to £85,000 with the Financial Services Compensation Scheme, if the firm is no longer trading. Should the firm still be trading, an application to the Financial Ombudsman Service can be made – the maximum award is £375,000.

The important thing to remember is to check your pension history. Many people have grounds for a claim without realising.

Examples of unregulated investment Sipp schemes:

  • GAS Verdant
  • Store First Storage Pods
  • Dolphin Capital
  • Greyfriars Portfolio Six
  • The Resort Group – Cape Verde
  • Carduss Housing
  • Freedom Bay
Robert Pemberton
2022-04-11
Antony Stroud
2022-04-08
Excellent company, would definitely use again, they never gave up
Junior Geener
2022-03-20
always kept you informed has to what was going on .I'd recommend pension claim to anybody
Ian Gaynor
2022-03-14
A thoroughly positive result and experience. In all honesty I didn't have much hope of any success following a truly dodgy pension investment. I spent years angry at myself then decided to let these guys have a go on my behalf. It took hardy any effort on my part and they kept me fully informed, then out of the blue I got a call saying they have won all my pension back plus more and within days it hit my account. Thrilled with their effort and professionalism. I dealt with a few different staff and all were informative, polite and helpful. I great end to a terrible situation. 100% genuine review and I cannot recommend them enough. Thank you.
Grace Anderson
2022-03-11
Pension Claim Consulting were a Godsend. I was told about them by a friend who had also invested in a pension. They kept me informed on the progress of my claim with regular updates and answered my queries with patience and professionalism. There percentage for on behalf was also lower than expected. I can't thank them enough
adrian buck
2022-03-10
Keith Wilkins
2022-03-09
Very thorough and achieved the goal regarding compensation in full. Took a while but was worth the wait
Mark Holmes
2022-03-08
Excellent service. Great result.
michael dixon
2022-03-08
I was approached by Pension Claim Consulting after the company that was handle ing my SIPP had been investigated by the Financial Ombudsmen and informed me i had a case, with this information given to me i agreed to let them represent me in trying to reclaim my investment. All through the process i was informed of every step and on a regular basis even though it took many months the outcome was successful and i was reimbursed fully. This is a fantastic company to work with and dedicated staff who know their business. Many Thanks. Mike Dixon.
Roderick Turnbull
2022-03-08
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.