Do you have a claim to make against a SIPP provider?
Due to the widespread practice of mis-selling SIPPs over the last two decades, experts predict that claims against SIPP providers are likely to spike in the coming years. This is reflected in the fact that the Financial Services Compensation Scheme (FSCS) are now accepting claims against increasing numbers of SIPP providers.
Did your SIPP provider fail to carry out due diligence?
Most claims against SIPP providers centre around the issue of due diligence. In allowing clients to make investments without conducting thorough checks into the schemes where the funds were directed, the providers failed to exercise reasonable care with their members’ money.
These were typically high-risk, non-standard and unregulated investments such as:
Many of these have subsequently become illiquid, leaving investors out of pocket and with little hope of recovering their money.
SIPP providers have also been found at fault where pension transfers have been approved for individuals acting on the advice of an introducer, without investigating whether the introducer is FCA regulated and acting in their client’s best interests. Often it turned out these introducers were not acting ethically and this placed many people’s pension funds at serious and unnecessary risk.
SIPP providers have also been found at fault for accepting pension transfers without a simple due diligence check to see if the introducers were FCA regulated or indeed acting in their client’s best interest in recommending a SIPP. In reality, SIPPs are an appropriate investment vehicle for only a very small number of pension holders and certainly not for those who are in any way risk-averse. Sadly, many introducers – regulated or otherwise, and driven purely by commission – were guilty of not acting ethically thereby placing many people’s pension funds at serious and unnecessary risk.
The ongoing Berkeley Burke legal case is a particularly high profile example of this sort of unprofessional operation.
At Beat the Banks we’re committed to helping those who have lost money at the hands of negligent SIPP providers and assisting them in making claims for compensation. If you believe you have a claim to make against a SIPP provider, our expert advisers would like to hear from you. Call us on 0800 193 1234 for a no-obligation chat about your case and how we can help you.