How do you know if you’ve been mis-sold a SIPP?
If you have moved your retirement savings into a Self-Invested Personal Pension (SIPP) on the recommendation of a financial adviser, there’s a high chance this product may have been mis-sold to you. SIPP mis-selling is sadly common and far too many people have lost some or all of their pension funds at the hands of unethical (and unregulated) financial advisers.
Here are some tell-tale signs that your SIPP might have been mis-sold. If one or more of the situations described below sound familiar to you then you may be entitled to compensation and our team at Beat the Banks are here to help you claim it.
Up until January 2019, it was perfectly legal for companies to cold call potential investors. This practice has now been banned, but prior to this a huge number of people were targeted by untrustworthy individuals and organisations wrongly promoting SIPPs as a great investment for all pension holders.
Sold as a good investment for everyone
Pensions are an incredibly complex area and there is no one-size-fits-all solution for everyone. In reality, SIPPs are only suitable for a small number of individuals with very specific set of circumstances and requirements. Unfortunately, SIPPs have been fraudulently sold by unscrupulous individuals as a great deal for everyone. This is sadly not the case and many have lost money as a consequence.
Full information was not disclosed
A common feature of mis-sold SIPPS cases is a lack of transparency over what an individual was signing up for. It could be that the consumer was not made aware of the management fees and additional costs that would be involved in transferring their pension to a SIPP, thus unexpectedly losing money.
Often, the full risks of switching to a SIPP were also not fully disclosed. People trustingly signed up to what they were led to believe was a secure investment opportunity with guaranteed returns when actually they were signing up for high risk, Unregulated Collective Investment Schemes (UCIS) that wiped out their pension funds.
High-pressure sales tactics
Many of those fraudulently selling SIPPs are unfortunately very skilled and convincing sales people. They know how to appeal to the temptation of their targets by offering schemes that promise huge, guaranteed growth with polished sales pitches and sophisticated marketing.
They also tend to apply scarcity tactics in a bid to secure a sale. Time-limited offers or limited space remaining offers are common features of mis-sold SIPPs. These pressure the consumer into signing up without undertaking due diligence or seeking a second opinion on the legitimacy of the scheme.
Not living up to promises
There are many different ways that consumers have been duped into transferring their pensions over to a SIPP. However, what the vast majority of these cases have in common is that the deals usually fail to live up to the promises made by those selling them. Whether this be guaranteed above inflation growth or a clever way to avoid taxes, the pension holder almost always faces the devastating reality of losing some or all of their hard earned savings.
At Beat the Banks we know it’s wrong that well-meaning pension holders have been cheated out of a financially secure retirement. If you believe that you may have been a victim of SIPP mis-selling our team would like to hear from you. Call us on 0800 193 1234 and find out how we can help you seek the justice you deserve.