There has been a number of people of the British public who have been mis-sold SIPP investments, which in many cases has led to significant financial losses and the diminishing of their retirement income.
What Is A SIPP?
For the uninitiated, a SIPP is a Self-invested personal pension, which is basically a means by which people with private pensions can invest money into a range of different options, these include the following but are not limited to: Stocks and shares, forestry, land overseas, property development, biofuels, and other types of investment.
This is a convenient way for people to place their pension from one fund to the other, with the idea being that if they transfer their pension they will grow their money (with the use of the SIPP investment).
The Problem With SIPPs (Mis-Sold SIPPS)
The problem with this idea which sounds good in concept but in actuality often doesn’t turn out the way it is first expected is the promises sold to the investors of these mis-sold SIPPs.
They are promised a certain level of return over a certain amount of time in many cases, and they often not only don’t see the promised returns but actually make financial losses.
Another issue with SIPP misselling is the fact many of these people are not warned about the risks of these investments, especially the unregulated (unregulated by the FCA) investments, which are often funds which are placed into financially risky and unethical schemes which have no realistic hope of yielding a good return for the investor, leaving them stuck in a position where they are taking financial losses in a mis-sold SIPP and not knowing where to turn.
The Light At The End Of The Tunnel For Victims Of Sipp Misselling
The good news for people who have been mis-sold a self-invested personal pension is the fact it is possible to claim compensation, and not only against companies still in operation through direct litigation, but also for mis-sold pension investments from companies’ who have since gone bust, this is made possible through the financial services compensation scheme (FSCS Compensation), which is a government-funded scheme enabling people to recover financial losses from these bad investments.
Many claims have already been put through successfully and there continues to be a volume of people getting refunds with the help of different companies who have facilitated the claims and helped them win compensation for their experiences and distress.
If you are reading this and you are the victim of SIPP misselling and would like to know more about your options and if you can claim compensation, there are a range of different companies’ out there who can help with this, look for a company which will handle the claim on a no win no fee basis so there is no upfront financial risk.
Claiming compensation for this product generally takes approximately 3-4 months from start to finish, and the compensation typically can be up to £80,000 making it an important exercise for many people suffering the effects of misselling.