FREQUENTLY ASKED QUESTIONS
The story behind missold SIPPs
Self Invested Personal Pensions Schemes (SIPPS) were approved by the Government and introduced in 1989. When the stock market remained static, and as an alternative option more than a million people have entered into a SIPP to assist in their pension plan.
However, SIPPS can be riskier than some other types of investment depending upon where the money is placed. Particularly carbon credits, hotels, care homes, overseas property, forestry, solar energy, wines and other schemes offering unusually high returns.
SIPPS offer Financial Advisers high commissions and have therefore been widely missold, and a great number of people have lost their hard earned savings as a result.
The clients long-term goals, attitude to risk and understanding of the type of investment were often not taken into consideration leaving them open to a risk far greater than they should have been exposed to.
How do I know if I have been missold my pension?
Let us state from the outset, just because your pension may have lost value does not mean it has been missold and give you the right to make a claim.
Any investment carries a risk, and investments can go down as well as up.
However, the way it was sold to you and the type of plan your money has been invested in may well determine that.
Your Financial Adviser had a duty of care to ensure the reason for moving your pension from one scheme to another was not only in your best interests, but you understood why it was happening and the risks involved.
Here are some of the reasons that your pension may have been missold:
1. You were advised to move your company, or occupational pension into a personal pension, and were not informed if you were giving up any guaranteed benefits from your old plan.
2. Your Financial Adviser did not carry out a "Fact Find" to understand your personal and families financial circumstances and attitude to risk.
3. You were not made aware of where your money would be invested and the risks involved.
4. You were encouraged to purchase an investment that carried a greater risk than you were prepared for.
5. Your Financial Adviser did not disclose the level of commission they would be receiving for the pension swap and how this would impact your pension investment.
ONE REASON ALONE MAY NOT BE ENOUGH TO CONFIRM IF YOU WERE MISSOLD YOUR PENSION, BUT IF YOU FEEL YOU WERE NOT CLEARLY INFORMED OF THE CHANGES AND RISKS INVOLVED CALL US TODAY FOR A FREE REVIEW ON 0800 779 7457.
What do I need to make a claim?
The success of your claim will depend upon many factors and gathering evidence is a key one.
Whilst we can go to your old and new pension provider for information, the new provider may be unwilling to be helpful so the more evidence you can supply the greater the chance of success.
1. We need evidence of your original pension. Details of the company it was with, payments and benefits. A final statement showing the final transfer value would also be ideal.
2. Details of your new pension. Details of the company who advised you to switch, where the investment is held, payments and benefits if any.
3. Crucially, some narrative as to why you think the pension was missold. Look at the misselling reasons shown in these FAQs and on this website. Were the criteria met? You will also be expected to supply information on how the pension was sold to you? What was said, were the risks explained and what was promised.
We understand digging out old paperwork is a chore, but this is vitally important to the success of your claim. Please take time to gather a much evidence as you can and only send copies to us.
How much compensation will I get?
It really is difficult to say at this time. Should your claim be upheld many factors will come in to play when calculating any compensation awarded. The value of your pension at the time of transfer, any losses from the transfer, the extent to which any commissions paid affected your pension value, loss of benefits, market conditions are all factors taken into consideration.
There is also a chance the company who recommended the transfer or managing the SIPP has gone into administration which means your case may be taken to the Financial Services Compensation Scheme (FSCS). We will do this for you as part of our service.
Please be patient. We are on your side...
Is Claimline Legal regulated?
100% Yes. Claimline Legal UK Limited is Authorised and Regulated by the Financial Conduct Authority in respect of Claims Management Activities. Our regulation no is FRN838320. You can find our entry registration on the FCA register.
Can I claim myself?
Yes. You have every right to make the claim yourself. You are not required to use us or any claims management company services. You can make the claim to your pensions adviser, a statutory ombudsman or compensation scheme for free.
Please keep in mind that claims can take up to 12-18 months to complete.
Communications, forms and letters may flow back and forth between your original pensions adviser, your new pensions management company, The Financial Ombudsman Service, The Pensions Ombudsman and The Financial Services Compensation Scheme.
We are experienced financial claims handlers with the right tracking systems and over 11 years experience. We are happy to take this on for you.
Do you work NO WIN NO FEE*?
*The term "no win no fee" is used within the conditions set out in Point 8 of our Terms & Conditions.
*Cancellation and other administrative fees may apply should you cancel our services outside the cool off period laid out in our
Terms & Conditions.