Category: SIPPs

Your pension provider should be there to financially assist you in your golden years. Pensions don’t have to be complicated. That’s why many people are happy to stick with the workplace pension they have been provided by their company or will take a state pension from the UK government. Unfortunately, there are extremely malicious people out there who want to take advantage of the vulnerable. Elderly people are more at risk of pension scams. This happens if they are isolated or do not fully understand their own pension plan. Sadly, hundreds of people around the UK have been mis-sold a pension plan and have been scammed out of their nest egg. Here at Gowing Law Solicitors, we believe that this is a gross injustice. That’s why we are determined to get you compensation if you have become the victim of a mis-sold pension.

Our law firm can provide you free advice and consultations to get started. That’s why we would highly recommend that you get in contact with us at quickly as possible. Call us on 0800 041 8350 or click the button below to visit our mis-sold pension’s website:

What type of pension provider should I go for?

Before we jump into the signs of a mis-sold pension scheme, let’s just have a brief discussions about pensions in general. As you probably already know, a pension is basically a pot of savings that you build up through your working career. Its main objective is to protect you during old age when you eventually want to retire. There are many different types of pensions for you to choose from. However, the most popular are these three categories:

As you can see, the majority of pension providers work alongside companies and workplaces to ensure that their employees have a safety net after they have retired. However, there are some that invest in SIPP schemes in order to increase the amount of their pension pot. This includes investments in hotels, foreign property and forestry. Make sure to do your research before you pick a pension plan for yourself. Most people tend to go with the provider that their workplace is using because it is a safer option. If you chose to go with a pension provider outside of your workplace or the UK government, you should find a financial advisor to give you the best investment options possible, especially if you are new to investing altogether. That way you can be protected against making large investments that could jeopardize your pension pot as a whole.

Why would my pension provider try to scam me?

As we get older, we get more trusting and may find it more difficult to discern when something is a little fishy. The sad truth is that a lot of elderly people are isolated and fall victim to these type of scams every year. Through phone scams alone, it is estimated that 43% of older people, that’s 5 million people 65 years or older, have lost money. Not every pension provider is going to be someone who is simply after your money. However, there are going to be unscrupulous people who work as a pension provider who will try to claim money from you or try and sell you a pension that will not suit you completely.

Honestly, the main reason why you pension provider might try to scam is you is due to money. You see, there are some pension providers that receive a share of the profits if they encourage clients. This is known as a commission. Therefore, it’s likely that they will actively try to encourage as many of their clients a possible to go with the profitable pension, even if it does not ultimately suit them, their needs or their investment. This may even be to the extent where they cold-call people out of the blue.

No one wants to think that a trusted financial advisor could simply be after a commission. But sadly, it does happen. That’s why it’s crucial that you do your own research on the recommended pension and your pension provider. Ask for their credentials and look for reviews on them. That way you can discern whether or not they are a trustworthy source of advice.

What are some signs that my pension provider could be trying to scam me?

Now that you understand that you need to be wary of all pension providers, you may feel a little concerned that you don’t understand what to look out for in relation to scams. A pension scam can be easy to spot if you take a little time to do some research before you agree to the conditions of the pension scheme. This is where Gowing Law is ready to help. Pension providers who are looking to mis-sell you a pension do have warning signs. Take a look at the infographic below. That way you can get a better idea of what you should be keeping an eye out for:

As you can see, there are quite a few warning signs that you can keep an eye out for in relation to your pension-provider and whether or not they are trying to mis-sell you a pension. Another sign can also be in relation to the type of paperwork they ask you to sign. Many examples of mis-sold pensions do not even have a contract that was signed! Instead, the pension provider simply took their money and told the victim that it was simpler to not involve contracts. This is a massive red-flag that you should be aware of. If you get a bad feeling about your financial advisor, you can ask them for their credentials and for more information about the pension scheme in general. If they refuse to provide more details then you can politely cut ties and look for a better financial advisor to guide you.

What should I do if I have become the victim of a mis-sold pension?

The first thing we want to say in relation to this is that we are sorry it has happened. Being the victim of a mis-sold pension can leave you feeling vulnerable and scared. In some cases, the financial advisor or the pension scheme may have took the majority of your nest egg and may have left you with barely anything to survive on. Whilst we cannot get you your investment back, we can get you the justice that you deserve.

If you have suffered from a mis-sold pension, the first thing you should do is collect information on the company and find evidence that you were mis-sold. This includes finding documentation and correspondence between you and the other parties. You can then speak to the FCA or Financial Ombudsman about the scam and write in a letter of complaint. From there, you can start constructing a legal claim against the third party with the help of a solicitor from Gowing Law Solicitors. They can do all of the difficult paper-work for you and make sure to speak to the third-party on your behalf. That way you can relax and recover from the trauma of the experience. Your solicitor can simplify the claims process for you and ensure that you can get the compensation that you deserve.

Gowing Law Solicitors can help you with your mis-sold pension claim

Here at Gowing Law Solicitors, we understand that being mis-sold a pension can be a traumatic experience for the victim. It can leave you feeling like a victim and unsure about the future. That’s where our law firm can come in order to solidify your future and get you a pay-out that can keep you ticking over for the time being. Our lawyers can offer you free advice and consultations to get you started. If you are happy to work with our law firm, we can offer our services on a “no win-no fee” basis. That means you will always come out on top and will never need to pay any hidden fees. You will only need to pay our solicitors if we win your case for you. So, what’s stopping you from making a claim?

Contact Gowing Law Solicitors today to start your claim! Call us on 0800 041 8350, email us at info@gowinglaw.co.uk or use our claim’s checker to get started. Our lawyers will then be available to answer your questions.

Learn more about mis-sold pensions in our blog

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If you have been mis-sold a SIPP scheme, you may have lost a significant amount of money from your investment. This can leave you feeling scared and vulnerable. After all, you went into the investment thinking that you were going to increase the amount of your work pension. Instead, you may have been forced into a scheme that was completely unregulated by the Financial Conduct Authority (FCA) and not even realized it! That’s why it’s time for you to get compensation for your lost funds. However, you may feel a little unsure about how you can go about how you can get started with any case of financial mis-selling for SIPPs.

Gowing Law Solicitors can help you with your mis-sold SIPP scheme and make sure that you get the compensation that you deserve. Our team can offer you no-obligation advice and make sure you are always updated about how your claim is progressing. We have even created a quick claims form that you can use to schedule a call with our specialists!

Click on the button below to visit our mis-sold SIPPs page for more information:

What is a Mis-Sold SIPP Scheme?

SIPPs stand for “Self-investment personal pension’s scheme”. They are used to help you invest in certain plans that can add a little extra to your pension pot. A mis-sold SIPP scheme is very similar to a mis-sold pension claim. Initially, you may have invested in order to increase the amount of money received during your retirement years. It’s a very common thing to do, however, we would recommend doing it if you feel as if you have the investment experience to understand what a good investment actually is.

The type of schemes you can invest include new and upcoming projects that could require public investment to get going. Here are some examples of the schemes and assets that you could invest in through SIPPs:

• UK and overseas stock
• Shares
• Investment trusts
• OEICs and unit trusts
• Insurance bonds
• Property

If you don’t have the experience to know what sort of investment would best suit your own needs, it’s important that you speak with an investment advisor in order to get their opinions on how you could increase your pension. Make sure to do your research before you choose the best advisor for you. Always look up their qualifications or ask to speak to them before hand before any sort of contract is signed. That way you can avoid any bad investments before they impact you financially.

A bad investment does not count as a mis-sold SIPP scheme. Instead, you have to have evidence that you were not given clear advice before making your investment. This is what defines your investment as mismanaged.

What is an example of a non-regulated SIPP scheme?

Over the last few years, a number of different non-standard pension investment schemes have been created and offered to UK citizens. Unfortunately, the majority of these schemes ended up being mis-sold as they were non-standard investments. Instead of having a good outcome for the investors, the advisors ended up making a large commission. This meant that the majority of SIPP scheme investors ended up losing a lot of money from their pension, to the extent where it affected their livelihoods.

Some examples of these non-regulated schemes included:

As you can see, there are different types of schemes that may not actually qualify as SIPPs. Instead, they could have been mis-sold to you and forced you to pay out more than you actually needed to. You don’t want to be left vulnerable without your pension. That’s why it’s important that if you actually are the victim of a mis-sold SIPP, you get at least some compensation for it. That way you can feel confident that you will be able to support yourself in the future.

How do I spot a mis-sold SIPP scheme?

As you now understand what it means to be the victim of mis-sold SIPPs, if you are considering investing in a scheme, you need to keep an eye out for some red flags that could distinguish a good investment from a bad investment. To be eligible for a mis-sold SIPP claim, you need to fall into one of the following categories. One of our solicitors can then help you with your claim or you can seek advice from the FCA to see if it is a SIPP that they have already been alerted to it.

You can also click the button below to visit our mis-sold pensions form:

1. Your financial advisor was not as experienced as you thought

To be a successful financial advisor, you must go through training, get certain qualifications and also have experience in the field. That way the clients know that they are in safe hands when they turn to the investor for help. Unfortunately, this is not always the case. In some cases, the advisor may have not had the experience that you thought they had. Instead, they could have lied about their qualifications in order to secure new clients or to get you to invest in a certain scheme.

If you are going to invest on someone else’s advice then make sure that they are qualified to give it. That way you can feel secure that they are telling you the truth. You can also do your own research into the investments they suggest. That way you can feel more confident in their abilities and are not giving your money away without knowing the full facts.

2. There were more risks to your chosen SIPP scheme than were explained to you

When you pick a SIPP scheme to invest in, it’s important that your advisor tells you all of the risks that are associated with it. This includes how much you may lose if the scheme ends up folding or if there are any changes to the scheme. Your advisor should be willing to give you information on the full contract and what the potential problems are. That way you can be flexible and make a choice surrounding which scheme you actually want to invest in.

If you get pushed into a certain scheme instead of making your own choice, it could look as if you were forced into it. This is not allowed and you have the right to let the FCA know about it. You were pressurised into a certain scheme without knowing the full risk. Therefore, your advisor mis-sold you a SIPP scheme.

3. Your advisor received a commission for getting you involved in the scheme

A clear sign that you have become the victim of a mis-sold SIPP scheme is when your advisor has made a profit on your investment. Sometimes large SIPP schemes and companies pay off third parties to advise people to join the scheme. However, the investor does not know this until it is too late. This is why you may think that they are picking schemes that are personalized to you and your financial situation, but in reality they are trying to get the best deal for themselves. Sometimes, you may even find that you are cold-called out of the blue about specific schemes that get the advisor a commission.

A common trick is that one party will pass you on to another in order to convince you that the scheme is completely legitimate. Instead, they work for the same company and simply wish to secure a deal. You may also find that the details about the company are very vague, but the fees to join the scheme are extremely high. It is very likely that these type of schemes may dissolve before you see any return on your original investment.

4. You were not told how your money was going to be invested

Sometimes when you invest your money in certain schemes, you don’t actually know where it is going to be invested. You may initially think it is going into legitimate projects, but then find it was actually sent elsewhere. For instance, you may have thought that your SIPP was invested in hotels that were going to be created around Europe. However, years later these hotels still have not been created and you have not seen a return on your money. This is a sign that it may have been invested elsewhere or could have gone into the pockets of unscrupulous business people. This is a clear sign that you have become the victim of a mis-sold SIPP scheme.

Before you go into any sort of SIPP scheme, you must find out as many details as possible about the scheme. That way you can feel good knowing that you have made a solid investment without there being a chance of repercussion on you or your pension. If you want to know a fact, ask as many times as you like. If you cannot get an answer you are satisfied with, it is wise that you find a different scheme to invest in.

5. You were told to transfer your work pension into a SIPP scheme

Sometimes people dabble in investing in smaller schemes, but don’t actually have any interest in changing their work-place pension or fully investing their entire pension into a scheme. However, you may have done this if your financial advisor told you to. Despite having plans to simply remain in the same pension as you originally built up, this can look like an act of pressure if you did not want to actually make an investment in a certain scheme. This is an obvious sign that you have been mis-sold a SIPP scheme. In fact, it can go a step further and make it look as if you were forced to give up your money, depending on the circumstances of your investment.

If this has happened to you and you feel as if you were forced, do not sit in silence. Instead, let our solicitors or the FCA know exactly what happened. They can help you claim compensation for what has happened to you.

How can I prove that I was mis-sold a SIPP scheme?

The best way to prove that you were eligible to make a claim when you were mis-sold a SIPP scheme is through your evidence. You need to be able to show that you received unsuitable advice from your advisor. That way you suffered a financial loss due your investment (aka. because of their advice.) If you can show that the advice caused you to experience extreme financial damages, you can prove that you deserve compensation. You may not be able to get your full pension returned to you, but you will be able to get help. We understand that you can feel vulnerable and afraid after this sort of thing has happened. But our solicitors will be here to help you through this difficult time.

Start on your mis-sold SIPP scheme claim today!

Here at Gowing Law Solicitors, we want to help as many people. That way they can get compensation for their mis-sold SIPP claim. Our specialists are here to give you no-obligation advice and consultations to get started. If you are happy to move forward with the claim, our solicitors can work with you on a “no win-no fee” basis. That means you will always come out on top. You will never need to pay any hidden fees. Instead, our solicitors will be upfront about their costs. You will only need to pay them if they win your case for you.

Contact Gowing Law Solicitors today by calling 0800 041 8350, emailing info@gowinglaw.co.uk or by using our claims checker. One of our claims specialists will then be in contact as quickly as possible to discuss your claim. Feel free to direct any questions towards them.

Learn more about mis-sold SIPPs claims now

If you want to learn more about this sort of financial mis-selling, the best place to look is our blog. We update it with the latest information about personal injuries and tax claims. The blog has brand new content every single week. So keep an eye to see what we have wrote about this week. Occasionally, you may see additional content about our competitions and seasonal events. If you cannot find the content that will answer your questions, feel free to write in to let us know. We would be more than happy to create blogs about your suggestions. Send in your questions to info@gowinglaw.co.uk. You can also keep an eye on our social media to watch our informative videos and posts.

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If you have been mis-sold a SIPP, it is likely that you may not know about it unless you research into the SIPP scheme itself. Many investors may experience the negative outcome of a mis-sold SIPP, some of them losing almost all of the pensions as a result, however they may not realize that they could actually claim compensation from this act of financial mis-selling. There are two different bodies that you could claim compensation from. The Financial Services Compensation Scheme (FSCS) could award you up to £50,000, whilst the Financial Ombudsman Service (FOS)has set a maximum compensation of £150,000.

Although you may not be able to regain the entirety of your investment, or your pension funds that you have invested, you should be able to be compensated for some of your losses. This should give you peace of mind, especially if you have a trained mis-sold SIPP lawyer on your side to help you through the process.

So, if you are considering investing in some sort of SIPP scheme, it is important that you know the signs of being mis-sold a SIPP. That way you can invest in a scheme that you fully understand. Before we jump in to the signs of a mis-sold SIPP scheme, remember, Gowing Law Solicitors can help you if you have been mis-sold a SIPP. Start your journey with our trained solicitors to get the compensation that you deserve.

What is a SIPP Scheme?

A SIPP stands for a “self-invested personal pension”. These were introduced in 1989 in order to give pension holders more freedom about where to invest their funds. Instead of going for a stand pension scheme from your pension provider, if you were willing to accept the risk, you could invest it in a completely different scheme (a SIPP). There was a higher chance you could get a larger return on your standard pension funds. A financial advisor could offer you advice on these types of investments, especially if you were still new to the world of SIPPs.

Originally, these SIPPs were extremely expensive. That meant that it was not a normal type of investment to make with normal funds. That’s why new SIPP products were introduced to target pension holders. This is because pension holders had a stable income that could be used to invest in a SIPP scheme. Now, you may think that if anything happened to the investors, it would come at their own risk .That meant that there was no risk of complaints because they fully understood the risk that came from these types of investment plans.

How could I have been mis-sold a SIPP?

One of the main things that we need to talk about is the vulnerability of those who invested in these types of SIPPs. Those who have a pension tend to be older. This means that there is a high chance that they could fall into a vulnerable age range. If this is combined with a lack of investment experience, this can leave them open to more malicious financial advisors or unregulated investment opportunities. Many people found that these “recommended SIPPs” were simply unsuitable for them and that the risk was higher than they expected. If someone had been mis-sold a SIPP, it is likely that they would sometimes be out of thousands of pounds from their pension pot or personal fund. This made it no different to being mis-sold a pension.

How do I know what an non-standard investment is?

If you have already been advised to invest in a specific type of SIPP, it is essential that you fully understand what you are investing in. One of the main reasons why you may have been mis-sold a pension is because you were making a “non-standard investment”. These investments may have included:

• Car Park Schemes
• Unlisted types of shares
• Luxury property abroad
• UK/abroad property
• Farms/Farm land
• Burial plots
• Forestry
• Renewable Energy
• Store pods
• Film schemes

SIPPs come with a wide array of investment opportunities. Usually, they may be in commercial property, investment trusts or shares. Keep an eye on the type of investments you are making. If you feel that they may be out of the normal categories of investment, or perhaps your advisor is pressurizing you too hard to invest, you should ask for help or conduct research to see if you can find evidence that you could be wasting your time and money on the scheme.

The Signs that you have been mis-sold a SIPP

You now understand the basics of mis-sold SIPP schemes. It is important for us to reflect on what you should do if you have already been mis-sold a SIPP. Unfortunately, you cannot get your money back, but you can still get compensation for your losses. This depends on how negligent your financial advisor was when they originally sold you your SIPP scheme.

If you can prove that your advisor gave you bad advice or told you to invest in a SIPP scheme that did not suit you, you can ultimately prove that you are the victim of a mis-sold SIPP scheme. To do this, you need to understand the signs of a mis-sold pension in the first place. Similarly you can use it to reflect on your own case and see what red flags could have been shown in your communication with your financial investment advisor:

1. Cold-Calling

SIPP investments can be extremely complicated. You have to take your time to find the right investment. For instance, it will suit the amount of money you have prepared to spend, and the amount of risk you want to take. So, why would a financial advisor randomly call you out of the blue to talk about a great new SIPP scheme that’s just appeared? Most of the time these advisors are commissioned or are part of a scam to get the money from your pension. The best thing to do is simply ignore these calls or hang up the phone. They are offering you a scheme that is not personalized and will most likely make you lose money. Do not get involved in them!

2. High-Pressure Advice

When you hire a financial investment advisor, you expect them to do the research about what SIPP is best for you and your financial situation. Unfortunately, they may not be as experienced as you think or have the credentials you originally believed them to have. That is why they may feel like they are trying to pressurise you into a certain scheme that does not fit you. Either that or they may make extra commission if they get you to invest in a certain SIPP. If you feel like you are being pressurized, it is important that you ask for your financial investment advisor to back off. You may need to find a new financial advisor or you could make it clear to your normal advisor that you have no intention in this recommendation. Instead, you would like new suggestions.

3. Your advisor knew about more risks than they were willing to tell you

This is one of the most common ways how you could have been mis-sold a SIPP scheme. Usually, when you invest in a specific SIPP, you know all of the risks and investment opportunities involved in the transaction. However, if your advisor only told you the positive aspects of the SIPP, and did not warn you about the potential risks, it is likely that you will lose more money than you originally intended. If you need some examples of SIPP schemes that have already done this, please have a look at the following investment brands:

• The Dolphin Trust
• Fast Pensions
• 1 Stop Financial Services

4. Lack of information about fees and commissions

When you invest in a certain scheme or investment plan, you most likely want to know as much information as possible about it. That way you can know precisely what you are getting into and how much of a reward you can expect in return. However, in some cases you may be forced to pay in more than you realised. Did your investment advisor tell you that they had to be paid a commission, or perhaps there were hidden fees on your investments? These can all be red flags as it shows that your advisor has very little interest in helping you. In fact, it may even point to a larger scam in play.

5. You were forced to leave a regular pension scheme to invest in a SIPP

The main aim of anyone who had been mis-sold a SIPP is to prove they did it because of bad advice. Originally, you may have been satisfied to keep your funds in a work-place pension scheme, or perhaps in a
government pension scheme.

However, you were advised to move it to a SIPP by your advisor, when you had no intention of doing so, this could be a prime example of bad advice. You may have thought you did not have the experience needed to invest, or perhaps just did not want all of the fuss and bother of an investment. Would you have even invested if you had not been pushed into it?  In conclusion, if that is not the case, it can show that you deserve compensation for your losses.

How long do I have to make a mis-sold SIPP claim?

As in most cases, you will have around 3 years. This will be from the time you found out you had been mis-sold the pension. We would advise that you collect as much evidence as possible before you make your claim. This can include:

• Communications with your financial advisor
• Letters of grievance
• Examples of your financial losses
• Information about the SIPP you invested with
• Examples of additional fees and commissions you have paid to your advisor

Can a Solicitor help me with a mis-sold SIPP scheme?

If you have been mis-sold a SIPP, one of the most important things that you can do is get a solicitor. They can help you understand your claim. Financial mis-selling cases can get extremely complicated. This is true especially if you need to prove that your financial advisor was negligent and did not find a SIPP scheme that was personalized to your own financial situation. Every investor is willing to spend different amounts of money and take varied amounts of risk. A financial advisor’s main job is to give you different options. These can help you understand what precisely you are investing in.

If this did not happen for you, a solicitor can help you claim compensation for their negligence. Here are some reasons how they can help you with your case:

Gowing Law Solicitors can help you if you have been mis-sold a SIPP

Gowing Law Solicitors understands how heart-breaking it can be to have your pension and SIPP funds stolen away from you. We endeavour above all to help as many people as possible around the UK claim for their mis-sold SIPPs. All you need to do is fill out our simple form with as much information about your claim as possible. Additionally, you can find our mis-sold SIPP form here.

If you do decide to work with us, our trained solicitors can offer you free advice and consultations. We work on a “no win-no fee” basis. That means that there is no risk to your claim. If we do not win your compensation, that means you do not have to pay any additional fees. So, what are you waiting for?

Call today on 08000418350, email info@gowinglaw.co.uk. or use our direct messaging feature on our contact page. One of our team members will then get in contact with you as quickly as possible to help you. If you want more information about mis-sold SIPPs, make sure to check out our mis-sold SIPP FAQ page!

Read more about mis-sold SIPPs!

Gowing Law is proud to keep its blog updated with the latest facts and information about UK law. We update it every week with new articles that discuss big topics and the basics of compensation claims. This includes information about safety at work, road traffic accidents and many forms of financial mis-selling. If you have a topic you would like us to write about, feel free to let us know. You can email info@gowinglaw.co.uk. In addition, we would also be happy to sign you up to our weekly newsletter.

We look forward to seeing you in our next blog and wish you luck with your mis-sold SIPP compensation claim.

If you have been mis-sold a pension then you are going to want to know about it. After all, you have spent all of your life trying to build up your savings. That way you can get to your golden years and live comfortably. However, if you have been scammed out of your pension, or perhaps have unknowingly invested your money in high-risk SIPP, then it is likely that your funds may be drained before you even realized it. You may have been promised a large reward in return for your investment. However, an unregulated pension scheme can return very little on your initial sum.

As a victim of a mis-sold pension, you are entitled to compensation. This is where the experts at Gowing Law Solicitors can move in to help you. There are a number of warning signs that could demonstrate that a pension has been mis-sold to you. These signs can make those who sold you the pension scheme liable for your damages. An experienced mis-sold pension lawyer can help you provide evidence so that you can make a claim. Take a look at some of the signs below to see if you could be owed mis-sold pension compensation.

What is a mis-sold pension?

Now this may seem like a bit of an obvious point, however you would be surprised how many people do not actually know the basics of a mis-sold pension. Usually, if you have a mis-sold pension it means that you have been given “unsuitable advice”. So, for instance, if you were advised to move your pension from a work-scheme to a SIPP scheme, after being promised a larger return than what you standard pension would give you, this was unsuitable advice. Mainly, this is due to the fact that you did not receive the return that you were promised.

A “mis-sold pension” does not just rely on the investor’s advice. In fact, it can be due to the investments themselves. If you were not told about the cost of these payments or the amount that would come with the losses, this is an example of how you were unfairly persuaded into investing. Worse still, you may have even ended up with unregulated investments that you had no idea were part of the deal. This may include:

You did not know about these unregulated investments until it was too late. That is why you ended up losing your pension funds. Make sure to check out all of the details that come along with you pension scheme, especially if you are investing in a SIPP scheme. That way you will always know where your funds are going.

What should I do if I am mis-sold a pension?

Unfortunately, if you have been mis-sold a pension, it is very likely that you will not be able to get back the full amount of your investment. However, you can claim compensation for your losses. Now, according to the UK government website, to claim compensation, your claim must fall into one of three categories:

As you can see, these are the main ways to distinguish whether or not you have a claim. However, if you invested in a SIPP, you may want to look carefully at their policies and keep updated about any news about them. This can tell you whether or not your investments may not be going as well as you hoped. Make sure to keep any correspondence between you and your advisor. If they are lying about any facts surrounding your pension scheme, this can be used as evidence.

How to tell if you have been mis-sold a pension?

As lawyers, Gowing Law strives to help as many people around the UK with their claims as possible, whether they are work accidents or mis-sold mortgages, it is extremely sad to see someone who has had all of their savings taken away. That’s why we want to provide as much support as possible during this stressful period. If you have recently invested in a pension scheme such as a SIPP, or perhaps are considering it, make sure to look at these ten signs of being offered an unsuitable pension scheme:

1. You were cold-called

One of the biggest red flags when it comes to pensions is being offered a scheme through cold calling. Cold calling is when an advisor/investor will contact you out of the blue and offered you a way to increase your pension fund. Usually these type of calls will be from numbers you do not recognize. The investors on the other end will not know anything about your own personal situation. Instead, they will be trying to see who will “bite” at the opportunity to make more money. Usually, these types of calls end up being scams.

2. Your Investment adviser lied about their experience

Now, when you reach out for investment help from a pension specialist, you expect them to have the right qualifications. This can include a qualification in pension essentials, calculations and administration. They may also have taken courses about the best investment opportunities and how to apply them to different people. That way they can provide you with an appropriate pension scheme that can support you throughout your old age with the financial returns.

However, this was not the case. Some investors do lie about their experience in order to bring in more clientele. They may have claimed to have qualifications or worked in investments for longer than they have. In order to help you avoid this in the future, make sure to ask for a copy of your investor’s qualifications or evidence of their prior experience. These should be readily available if they do not have anything to hide.

3. Your investor did not provide you information about your pension

Did you know that at least 49% of mis-sold pensions happen because the pension holders were not provided with specific information about their investment? Most people are told about the positives of their pension. However, your investor may have left out some of the risks involved in the scheme. This meant that you invested your hard-earned pension without knowing what was fully involved. There could be small details that were not mentioned, worse still it may have been invested in high-risk products. This is what happened to SIPP investors that were convinced to put their money into The Dolphin Trust and Harlequin Properties. However, SIPPs are a little different to mis-sold pensions, so make sure to visit our SIPP page for more information:

4. Lack of Paperwork

How could you possibly make any sort of investment if you do not have the appropriate paperwork to back it up? Any investment should come with paperwork that details what you are investing in, how much you should expect to make out of your investment and how long it should potentially take. It should also list any potential risks that may make you lose money. Having the appropriate paperwork will help you distinguish whether or not you actually want to invest in the pension scheme or if you want to look around for alternatives. If a pension investor comes to you and claims to not have any paperwork to make things “simpler”, this is a red flag that something underhanded may be going on. Do not invest in this sort of “get rich quick” scheme.

5. Pressurized Investments

Now, in some cases, it may be likely that the investor you are working with may be making a commissioned profit off of your investment. This is because they get paid for every person they pull into the scheme. Of course, they will not tell you this, but it definitely gives them incentive to try and get you to invest. You may find that your investor starts to pressurize you in to the scheme by saying:

• Your contract has a time limit
• The investment is only going to be this cheap for so long
• They are going to offer your investment to someone else
• Other schemes require larger payments to invest

If you feel like you are being forced to invest, rather than you are being given a genuine choice, this is a sign that it may not be worth it. Make sure to tell your investor that you do need time to consider your options and that you cannot be forced into a pension scheme without careful consideration. If they do not back down then clearly it is time for you to find a different pension scheme.

6. Guaranteed Returns

If you have been mis-sold a pension, it is likely that it is due to the fact that your investor promised you a lot more than what they could actually deliver. An investor can provide you with case studies and evidence of how well a certain pension scheme has delivered for other people, however, they cannot ultimately say that any sort of pension scheme has a 100% chance of a guaranteed return. An investor saying this to you is clearly a red flag. It may also indicate that they do not know or understand the type of scheme they are trying to get you to invest in. Make sure to do your research if your investor is not telling you all of the facts about your potential pension scheme.

7. Fees & Charges

When you enter a pension scheme, the last thing you want to hear is that there is a joining fee or hidden commission fee that is required by your advisor to proceed with the investment. This should not happen if you are transferring your funds in to a pension scheme. Paying for anything that is outside of your initial investment is always a bad sign. After all, it is shows that your advisor solely wants to make money off you rather than help you retire in comfort.

8. Tax Avoidance Schemes

Now, this is completely illegal and normally is a sign of a scam. You have to pay tax in the UK or else you could be scamming vital services out of money. If you were unaware that this was happening, or that your funds had gone anywhere near this sort of scheme, you could be owed a lot of compensation. Make sure to provide evidence that you were not knowingly involved in this sort of scheme, including mis-leading documentation and communication between you and your advisor.

9. You were pressurized to leave your work pension

Normally, if you have had your funds placed into a work-place pension, they usually use a standard pension scheme that can ensure you get a comfortable amount once you retire. Those who are used to making investments may actively choose to leave this pension scheme. This is because they have a basic understanding of how investments work and how they can make a profit off them. However, if you are not used to investing, it is likely that you will stick with the pension provider of your firm. This is why it may have taken some convincing to try and get you to invest your funds in to a different type of pension scheme.

Did you find that your pension advisor recommended that you leave your work’s pension scheme? This act of pressure may have made you feel uncomfortable or like you were being bullied in to a scheme. You may have lost out on a good sum of money due to this bad advice. That’s why you could be due compensation.

10. New Unregulated Schemes

Even now, there are a number of unregulated investment schemes that are being marketed to vulnerable people. Around 19% of schemes that are judged as “dodgy” tend to get that title because they have not been adequately evaluated. Some advisors spend as little as 15 minutes checking over each scheme to make sure that each scheme is appropriate for their clients. It is the advisor’s duty to make sure that they understand that each scheme is personalized to their client’s needs. A good advisor will do diligence processes to ensure that each investment is not a scam scheme. Make sure your advisor does this as well or else you may have been accidentally mis-sold a pension.

Gowing Law Solicitors can help you with your claim!

Here at Gowing Law Solicitors, we think it is disgraceful that someone would try to scam you out of your hard-earned pension. If you are the victim of a mis-sold pension then you deserve compensation. That way you can reclaim some of the funds that were stolen from you. Gowing Law has experienced mis-sold pension solicitors that are ready to help you. They can offer you free consultations and advice to get you started. This can all be done from the safety of your home. Gowing Law is more than happy to help you remotely. If you decide to work with us, our solicitors work on a “no-win, no fee” basis. That means there is no risk to you making a claim. You will always come out on top.

Speak to a professional solicitor today about your claim! Call 0800 041 8350, email info@gowinglaw.co.uk, or use our direct messaging feature on our contact page. From there, one of our helpful team members will be in contact with you as quickly as possible.

Read more about mis-sold pensions

We are proud that we keep our blog updated every week. This is with the latest articles on UK law and topical issues. If you want to learn more about mis-sold pensions and SIPPs, see the articles below to get started:

• Are you the Victim of a Mis-Sold Pension?
• How to Choose the best Self-Invested Pension Plan (SIPP Scheme)

We also cover other areas of financial mis-selling, like PPI tax claims and mis-sold mortgages. Feel free to scroll through our blog as much as you want. We are sure there is an article that you will love reading!

If you want to suggest a topic for our blog, feel free to write in to info@gowinglaw.co.uk. We would be more than happy to cover it or sign you up to our weekly newsletter.

We look forward to hearing from you soon. See you in our next blog!