Mis-sold SIPP Pension Claims

Identify if your SIPP was mis-sold, explore your compensation options, and get expert guidance to protect your financial future.

A Self-Invested Personal Pension (SIPP) is a type of personal pension that allows you to hold and manage yourself multiple investment funds and property within a single pension ‘wrapper.’ The goal is to grow your retirement savings over time by carefully managing these investments. Typically, a financial adviser selects the investments within your SIPP based on your financial goals, risk tolerance, and retirement plans. However, if you were not given proper advice or were encouraged to invest in unsuitable, high-risk funds, your pension may be at risk.

When providing for retirement, it is good practice to invest in safe and secure assets. However, a mis-sold SIPP occurs when your SIPP is used as a conduit for an unsuitable investment strategy. This can happen if the adviser fails to provide all the necessary information about the transfer or makes an unsuitable recommendation of a high-risk investment while promising unrealistic returns.

Here are some common ‘red flags’. If you notice any of these warning signs, it is important to pause and carefully consider whether the proposed SIPP transfer is in your best interests:

• Unsolicited contact, cold calling, or aggressive pressure tactics. If you are being pressurised into transferring your pension into a SIPP quickly, always stop to think why.
• Beware of advisers not authorised by the FCA who offer unregulated, high-risk schemes (such as overseas property or cryptocurrency) with promises of unrealistic, or “guaranteed”, returns.
• If an adviser provides you with no information about the pros and cons of keeping your pension where it is (for example, if you have a defined benefit pension that could provide guaranteed income in retirement).
• An adviser who fails to consider your specific needs and wrongly categorises you as a risk-taker when you are close to retirement.
• An adviser who gives you verbal advice only, or an adviser who does not provide clear, written advice detailing their recommendations.
• Lastly, you should also look out for high fees and charges, hidden or excessive fees, and unexpected exit fees.

Step 1: FREE initial consultation to assess your claim.
Step 2: Gathering evidence and building your case.
Step 3: Handling negotiations with the adviser or company.
Step 4: Recovering your money.

We have over 17 years’ specialist experience in pension professional negligence and boast a team of lawyers working exclusively on these cases. We can offer you:

• A FREE initial consultation in order to assess your claim.
• Evidence gathering to build the strength of your case.
• The presentation of your claim to the adviser and/or redress body.
• Handling negotiations with the adviser or their legal representatives.
• Multiple ways to recover your money, either through alternative dispute resolution or the court as a last resort.

Because SIPP providers are regulated by the Financial Conduct Authority, if your SIPP provider fails, you can potentially make a claim at the Financial Services Compensation Scheme (FSCS). The FSCS is an independent organisation that was set up as a fund of last resort in order to compensate customers of authorised financial services firms that have subsequently been determined to be unable to pay claims made against them. There is, however, a statutory cap to the amount of money that you can recover; it is currently set at £85,000.

Whilst a SIPP can be suitable for investors who understand and accept the risks involved, it is typically a much riskier way to provide for your retirement. Pension funds are usually invested in a conservative manner because, when providing for retirement, it is good practice to invest in safe and secure assets. A SIPP can be used to invest in high-risk, non-standard assets, which can then fail leaving the investor facing catastrophic losses.

You might need to pay tax on your compensation. This will depend on; (i) whether the compensation is paid back into your SIPP or to you directly, (ii) your income, and, (iii) your personal circumstances.