A mis-sold SIPP is a pension product that is unsuitable for the client it was sold to or has been sold in a way that was misleading.
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 a lot of mis-selling cases this is usually done by an Unregulated Introducer who cold-call people and use a marketing tactic known as 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 mis-sold SIPPs are unsuitable for the average retail client and should only be recommended to people who have a certain risk profile and investment experience.
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 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.
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.
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.
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.