Home » Law  » Mis Sold Self Invested Personal Pensions (SIPPs) – Victims Beware

n the United Kingdom, there has been an epidemic in mis sold SIPPs, with people from all over the country being marketed to aggressively with SIPP investments which are not as they are sold as.

With a range of different SIPP investments available, multiple SIPPs have been found to be mis sold, which has caused a major issue for both the victims and companies alike, read on to find out more about this issue.

Mis Sold SIPPs – Misleading Sales Techniques

Many companies marketing self invested personal pension investments have used mass cold calling to market to the general public, with promises of returns that later were proven to be false, sold under the guise of ‘guaranteed returns’ and ‘guaranteed growth investments’ by the cold callers and other sales team members peddling these products.

Mis Sold SIPPs – Problem With Guaranteed Investments

The issue with guaranteed investments is an investment like a SIPP can never be guaranteed, this is because like with all investment types, there is a risk the individual can lose money instead of see their money grow.

This is why it is necessary for independent financial advisers’ to warn all potential investors that SIPPs (self invested personal pensions) can also produce losses and not gains in some cases.

The Problem With SIPPs

The problem is, the IFA’s selling the investments had other priorities in a lot of cases, this meant they were putting themselves before the client and providing financial advice that was not in the best interests of the investor, promoting products where they would receive a high commission and potentially other financial perks instead of giving sound financial advice.

This led to a mis selling scandal with 100,000s of people affected, and having taken financial losses, after being guaranteed financial gains, which constitutes mis selling.

Compensation Claims For Mis Sold SIPPs

It is possible to claim compensation for mis sold SIPPs since it was ruled that many of these investment products were mis sold.

Once this was decided many of the victims of SIPP mis selling were awarded compensation, much of this was awarded through the FSCS (financial services compensation scheme), which has refunded millions to people all over the United Kingdom for pension mis selling.

Mis Sold SIPPs – How Much Compensation Could A Victim Be Due?

Average compensation amounts in this market have been seen at around £25,000-£50,000, it’s absolutely critical that anyone who thinks they have been mis sold a SIPP makes enquiries about making a claim (a large amount of money is at stake).

The compensation can be won within 3-4 months, (average time to payout), from the initial enquiry about a claim, so within three-four months to completion with a full payout issued to the mis selling victim.

If you feel you may have been mis sold SIPPs pension investments then look for a company like to handle the claim on a no win no fee basis, who will handle it so you don’t have to.

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