Was your SIPP mis-sold? Because if that is the case our specialist team can help you submit a claim.

A SIPP is a Self-Invested Personal Pension. It differs from a traditional pension in the fact that it allows the investor to have much better control over what to invest, and where.

SIPPs offer a wider choice of places to invest your pension in to and can reap higher rewards as a result. For those investors who have knowledge and experience of investments, they can be very profitable. However, they are best suited to those who have more money to invest and are often seen as a more high-risk option.

A SIPP also requires the investor to be more hands-on with their pension decisions in most instances. A financial advisor will often be used – and should be used – for helping to manage a SIPP on behalf of an investor. This advisor is tasked with selecting SIPP investment opportunities for the client which match their needs, objectives and preferences.

For example, if the investor enjoys, or is interested in, high-risk investment opportunities, then by all means these should be brought to the table by the financial advisor. However, this is not always the case and advisers have been found to invest client’s funds in to investments which are riskier than their client is comfortable with. Often their client will not know the extent of this investment or just how risky it is.

As a result of these practises, clients have made significant losses through no fault of their own which can then lead to financial difficulties during their retirement.

Grounds for a claim?

You may have grounds for a claim if any of the following scenarios apply:

  • You were wrongly advised by a financial advisor to change where your money was being invested, or how much, without a thorough and clear explanation of why and what the risks may be.
  • Your financial advisor gave you assurances that your SIPP value would increase as a result of an action, but in fact, it has fallen.
  • Your financial advisor did not correctly or accurately inform you of the factors which may lead to a reduction of the value of investments.

Organisations who have been involved with SIPP losses

Unfortunately, there are many examples of organisations and financial advisors being implicated in serious failures and losses when it comes to SIPP investments. Most of these problems are a result of advisors investing in high-risk investments without the full knowledge of, or against the needs of, the investor.

The FCA have now taken disciplinary action in cases when advisers have been culpable in this way. Misleading investors, not fully disclosing risks or failing to notify of any conflicts of interest for themselves are all cited as common complaints.

There are many examples of companies who have now had action brought against them due to this type of behaviour relating to SIPPs. Companies who have encouraged investors to pay into unregulated investments via SIPPs, for example, is worryingly common.

An example of a company who did this was Tailormade Independent, who were duly put into liquidation as a result and bans from the financial industry handed to three of its directors.

Examples of unregulated SIPP investments which you may have been encouraged to invest into:

  • Biofuels
  • Farmland
  • Green oil
  • Overseas property

Which products were mis-sold?

If any of the investments you have made with your SIPP include the products listed below, it’s highly likely that you have a strong case for a claim.

  • Off-plan properties
  • Wine
  • Global Forestry Investments
  • Farmland in Australia
  • Store pods

Even if the financial advisor with whom you invested with and trusted is no longer trading, you may still be able to recoup some of your losses with our help. Contact us today to discuss your SIPP investment history with our skilled and professional team.

Types of SIPPs

As with many financial products, there are several variations of what we refer to as SIPPs. We will explain each of the three types below:

“Full” SIPPs

Full SIPPs carry the highest risk and potentially the highest reward. They’re suited to investors who have a significant amount of money to invest in their pension and do also incur the highest charges of any other type of SIPP.

  • Fee structure: Can be a flat rate or a percentage of the investment. Set-up fees may also apply, in addition to trading charges and an annual management charge to your financial advisor.
  • Approximate investment sum: £150,000 – £400,000
  • Examples of full SIPP providers: Rowanmoor, Alliance Trust, Standard Life

Low-cost SIPPs

Low-cost SIPPs are more realistic for those without the high amounts of investment funds required for a full SIPP. The key difference is that owning properties, investing in unquoted shares and offshore funds are not available with a low-cost SIPP.

  • Fee structure: Can be a flat rate or a percentage of the investment. Set-up fees may also apply, in addition to trading charges and an annual management charge to your financial advisor.
  • Fee structure: No annual management charge or set-up fees.
  • Examples of low-cost SIPP providers: Charles Stanley Direct, Barclays Stockbrokers, AJ Bell Youinvest

Hybrid SIPPS

A hybrid SIPP will be offered by insurance companies and will again require a significant investment. In this scenario, you will be required to pay a substantial amount of money in to the insurance company’s own funds before you can choose assets of your own. These SIPPs do not offer the type of full control that a full SIPP would.

  • Fee structure: Set-up fees may be charged and capped annual management fees of approx. £600.
  • Examples of hybrid SIPPP providers: Axa, Legal & General, Aegon

Transferring pension in to a SIPP

If you’ve worked in multiple jobs for several different employers during your career, then it’s quite likely that you have several pensions set-up already. Each will be independent to the other, with possible fees and charges being taken for each.

Therefore, it can make a lot of sense to consolidate these into a single pension, and SIPPs are ideal for this. It means that all of your money will be in one place, while also offering you the opportunity to draw an income from the SIPP.

As it stands, the majority of SIPPs that are active have come as a result of pension transfers. It’s important to take the time to evaluate whether your pension is suitable for transferring to a SIPP.

Here’s some information on the types of pension you have and whether they may be suitable for transferring:

Final salary options

A final salary option for a SIPP is a defined benefit scheme. They usually offer an unbeatable deal as they provide guaranteed pensions and generous benefits for spouses that are hard to replicate in private schemes. As such, these are very hard to transfer to SIPPs.

Defined contributions

Generally speaking, defined contribution pensions are more suitable for transferring to a SIPP. The amount they pay out is all relative to what you pay in, how the investment performs and what deductions are taken out in the way of charges. If you’re part of an employer’s defined contribution pension, transferring out of it may mean you lose the employer contribution, so you need to consider whether the transfer is worth it.

Personal pension

Personal pension schemes can be fairly easy to transfer to SIPPs, however, before doing so, make sure you’re aware of any exit penalties that may be placed upon you.

Mis-selling of SIPPSs

If you have been mis-sold your SIPP, then it’s highly likely that you will be able to claim against the financial advisor or firm that worked with your investments. The FCA regulates how SIPPs and cash investments are invested, with strict guidelines for those companies and persons responsible for selling them. With so many high-risk investments mis-sold to hard-working individuals, there are procedures in place for taking action against those advisers.

What is mis-selling

When considering if you have been mis-sold something, it can become quite stressful trying to identify in your own mind what constitutes mis-selling. It’s actually something you should look at really simply; if you have invested on the back of unsuitable advice, without the full and correct information or without knowing the risks involved, then that constitutes mis-selling.

Mis-selling can also be instanced where fees and charges have not been properly disclosed to you.

As a direct consequence of this mis-selling, your pension value may have decreased rather than increasing, despite the assurances offered by your adviser.

Have you been mis-sold?

Sadly, many innocent and hard-working members of the public who have invested heavily in SIPPs on the back of advice they have been given have incurred significant losses or devaluing of their pension. Tens of thousands of pounds can be lost in each scenario as a result of mis-selling and it can have a devastating effect on people’s life in retirement.

Mis-selling does not just apply to the investments themselves, but also to the high fees and charges associated with SIPPs. Advisors have been known to encourage investments just to earn greater commission themselves, while any advice in relation to overseas investments which subsequently dissolve is also a case of mis-selling.

The losses can be huge and the outcome catastrophic for savers. In summary, if you have invested in any of the following areas then you may have a case for claiming to have been mis-sold SIPPs.

  • Overseas property
  • Fruit farming projects
  • Wine
  • Diamonds
  • Carbon credits
  • Hotel developments
  • Forestry projects
  • Green oil
  • Storage pods

In addition, any of the types of fund companies listed below that have been invested into were almost certainly unregulated. If these investments were mis-sold, we may also be able to recover some of your money for you:

  • Green energy
  • Harlequin property
  • Forestry
  • Carbon
  • Wine
  • Offshore funds offering high returns
  • UK-based funds offering high returns
  • Green oil
  • Storage pods

Wide ranging mis-selling of SIPP

While the lists on this page are long, it’s important to know that investment opportunities which are, or were, available to SUPP investors are so incredibly wide-ranging that they may not feature on this page. That does not mean that you have not been mis-sold. If you have any doubts about the way in which certain investment opportunities were sold to you, contact our team today.

Don’t forget, while all investments are risky to some degree, it is the duty of your advisor to ensure that investments you are considering are sound and in line with the level of risk you’re willing to invest in. If this has not been the case, you will probably have a claim.

How to claim

If you think you may have been mis-sold SIPP, then it’s time to get the ball rolling. And it couldn’t be simpler.

Our professional team of case handlers is standing by ready to speak to you and begin processing your claim. We could claim thousands of pounds back on your behalf.

Simply follow our step-by-step guide below for how to claim for your mis-sold SIPP.

  1. Get in touch! – The obvious first step is to speak to us. Pick up the phone, or better still, fill out the contact form on our website and we will call you back at a time and place suitable for you.
  2. Assessment – Once we have all of the information we need; our skilled team will then access the details to see if there is a possibility of a mis-selling claim.
  3. Paperwork done by us! – Once we get down to proceeding with your claim, all of that complicated paperwork will be filled out and processed by us. All of the phone calls and communication between us and the pension provider will also be done by us, but we will keep you up-to-date with our progress.
  4. The result – Once the claim is complete, we will do our best to get monies returned to you through either the IFA, SIPP provider, FOS or FSCS. Basically, we will exhaust all avenues to try and reclaim what you may be owed.Harlequin property.