FSCS Paid Out £123m in Sipp-related Compensation Last Year
In the financial year to April 2019 the FSCS paid out £123 million in compensation
to victims of SIPP (Self Invested Personal Pension) mis-selling.
The FSCS says most claims around life and pensions advice involved SIPP’s, and that most of those complaints surrounded advice given by financial advisers to move pension savings out of existing occupational pension arrangements and invest in other investments within SIPP wrappers.
The lifeboat fund notes: “These investments are often high risk and unsuitable for most investors, so some inevitably fail and become illiquid. This trend began four years ago, and costs are still rising.”
“These investments are often high risk and unsuitable for most investors, so some inevitably fail and become illiquid. This trend began four years ago, and costs are still rising.” FSCS
It adds that it will keep trying to make recoveries from firms themselves, “continuing to focus across UK and international jurisdictions, where the underlying investment has failed (in Sipp mis-selling and other similar cases).”
FSCS chief executive Caroline Rainbird says: “As we continue to see a rise in Sipp related claims we are working with our partners in industry to gain valuable insight into the causes of firm failures and about the directors and advisers involved in mis-selling.”
Source: FSCS financial statements can be accessed on their website here
What counts as financial mis-selling?
Mis-selling means that you were given unsuitable advice, the risks were not explained to you or you were not given all the facts you needed and ended up with a pension or investment that didn’t work for you.
Have you experienced any of the below? If so, are you a victim of pension / investment mis-selling?
- Were you contacted out of the blue and offered a free pension assessment?
- Did a financial advisor advise you to move your work or personal pension or all of your pensions into Self Invested Personal Pension?
- Were one of these investment types presented to you:
Overseas property? Land? Storage Units? Carparks? Carbon credits? Loan notes? Mauritian stock exchange? Farm land? Plus many more.
- Were you advised that you were moving your pensions into a possible high-risk investment?
- Did you fully understand the charging structure?
- Are you struggling to get access to your pension?
- Have you been told you have to give notice or even sell the investment yourself?
- Do you know what you have invested in?
- Has the company you received the advice from disappeared or gone into administration?
- Has your investment left you in a far worse position than had you not taken the advice?
- Are your investments written off completed, suspended, or left in tatters?