The UK pension system is notoriously complicated. With so many options and providers, it’s no wonder that many people make poor choices when it comes to their retirement planning, and there’s the problem of shady financial advisors and dodgy investments out there. Read more about planning for retirement on this site here.
One of the biggest mistakes people can make is to trust a stranger for advice. Unfortunately, many companies have agents who call individuals and are mis selling SIPP pensions, leading people down a path that could ultimately cost them dearly. If you’ve been a victim of these kinds of schemes, you might be eligible to claim some of the money that you lost, and here are things that you need to know.
What is a SIPP?
A SIPP means a self-invested personal pension, which is generally regulated in the UK. It allows individuals to make their own investment decisions within the limits of HMRC regulations.
However, there have been several high-profile cases where people have lost large sums of money after being mis-sold SIPPs by financial advisers. In some cases, the adviser may have encouraged the individual to invest in high-risk or unsuitable investments, such as overseas property or storage pods.
If you believe you have been a victim of a mis-sold SIPP, you should seek legal advice from a lawyer specializing in this area. They will be able to assess your case and advise you on the best course of action.
What is SIPP Mis-Selling?
Financial products are considered mis-sold if they are unsuitable for your particular needs and circumstances. There’s not enough explanation about the risks you’re facing, or you’ve been given misleading information about a specific product.
This could be done deliberately to sell the so-called investments or simply because the advisors do not have the correct information themselves. In either case, it is important to remember that you have the right to receive accurate and truthful information from professionals in the investment industry, and if you feel like this has not been the case, you may be entitled to compensation.
Some have ended in complete disasters, including forestry, biodiesel, overseas investments, holiday properties, and green energy. By taking the complaint to the Financial Ombudsman Service, you might be eligible for a claim for a Mis Sold SIPP Pension and you can get a refund when this is proven to be true. If you find it challenging to prove that you were mis-sold a pension, you could contact a law firm or a claims management company that can help you figure out what to do next.
Other instances are the following:
- The person who sold the SIPP didn’t explain the risks properly to you
- They failed to take your current circumstances into consideration
- You’re not aware that your funds are going to be invested in high-risk investments
- There’s no fact-finding to determine your current goals or if SIPP is the right choice for you
- It was highly encouraged to carry more risk than what you’re prepared for, and your financial interests were not in that advisor’s mind.
What to Do Next?
If you were mis-sold a pension by your financial advisor, there could be serious consequences that you might be facing. You may have lost out on years of retirement savings, and you may now be out of a job with a pension plan that pays little to nothing.
You can do a few things if you believe you have mis-sold a pension. You can complain to the right institution, and if they find that you were misled, they may refund your losses. You can also contact a solicitor who specializes in these cases, and they may be able to help you recover some or all of your money.
If you were mis-sold a pension, it is important to act quickly. The sooner you take action, the better your chance of recovering your losses. Read more about mis-sold pensions on this page: https://www.nerdwallet.com/uk/pensions/mis-sold-a-pension/.
Should You Call an Attorney?
Some people are advised to call an attorney for mis-sold pension advice. This way, they will have a higher chance of success with their claims, and you will be more prepared for what’s to come. Someone will be able to present your case concisely, and they will gather the paperwork and evidence on your behalf to prove that you were a victim of mis-selling. You can also do some research and check the website of the Financial Ombudsman and the FSCS to see if you’re eligible for a claim.