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Sipp Schemes are complicated. As you get older, you may become worried about how much money you have saved up for your pension. Sometimes what you have worked for just isn’t enough. That’s why you may be considering investing in a SIPP scheme. If you place your pension in the appropriate SIPP, this can help you receive more than you originally intended on settling with. There are over 750,000 SIPP schemes in the UK, collectively having around £110 billion in savings. That’s why you will need to be careful about which scheme you choose to invest in. If you can avoid being mis-sold a SIPP then you will find that the return you receive is worth it.

If you are new to the world of SIPPs, you may need some help maneuvering through your different options. You will need a good financial advisor and, in some circumstances, may need an experienced lawyer just in case you are mis-advised about your SIPP investment. Let’s learn together how to choose the perfect SIPP scheme for you, and what you can do if it goes wrong.

What is a SIPP?

Basically, SIPPs are pension plans for people who are looking for more flexibility and control over their pension savings. Now, most people would go for a standard pension either provided by the state or from their company. However, there are other people who would prefer to gather all of their pension funds together before they retire. With a SIPP, the pension owner can control how their money grows and where the money is put into. They do not need to rely on any sort of Pension Company or the government. Instead, they have the power to control their own funds. Finally, once they are happy with the size of their nest egg, they can ask for their savings to be refunded.

This may sound easy in theory, however it is important that investors are aware that there are SIPPs out there that are less than savoury. You do not want to become the victim of a mis-sold pension. That’s why it’s crucial you make the appropriate financial decisions.

Are you suitable for a SIPP?

If you are a retirement saver, you may be considering your options between an ISA and a SIPP. Most people tend to invest in both, however if you are solely considering a SIPP it may because you want use an “income drawdown”. However there are other reasons.

Should you fall into one of these brackets, you may want to start looking online for an appropriate SIPP scheme to invest in. You should also consider one if:

  • A financial advisor is employed under you who can make decisions on your behalf
  • You have a large pension pot that you will continue to make significant contributions to before retirement
  • As an experienced investor, you understand the risks and are interested in a wider array of options

Having experience in investment plans can help you when it comes to picking the perfect SIPP scheme for you. That way you can avoid any problematic schemes that may be looking to take money away from you, rather than trying to repay your investment.

The Different Types of SIPP Schemes

Now, if you don’t have an Individual Savings Account (ISAs) due to being self-employed or due to not having enough savings, you may be considering putting your pension pot into a SIPP. There are quite a few examples of SIPPs. These include:

You can expand your pension with any of these investments, however it is important that you consider what you are actually going to be investing your pension in. You need to make sure you are not choosing a SIPP scheme that is unregulated (i.e. not regulated by the FCA) that may ask you for additional funds. The property you invest in may include:

  • Investment Trusts on the stock exchange
  • UK Government bonds
  • Foreign Government bonds
  • Stocks & shares
  • Gilts & bonds
  • Open-ended investments & companies
  • London stock exchange ETFs
  • European markets ETFs
  • Bank deposit accounts
  • Offshore funds
  • Commercial properties
  • Real Estate on the stock exchange
  • Unit Trusts

Having an experienced financial advisor can help guide you through these different investment options. If you have chosen the best financial advisor for you then they will offer you clear advice that will help you grow your pension pot. Make sure to check their qualifications and how much experience they have actually had in SIPP investments. If you are mis-led by them due to their lack of knowledge, then you may be owed compensation.

The Amount of SIPP Risk

With every investment comes a potential risk. Some investments may be low-risk ventures, meaning that you get a substantial amount of money whilst knowing that your main investment is relatively safe with the company that has been invested in. However, other investments may be high risk. These include luxury properties abroad, diamonds or perhaps commercial projects. It is the job of your financial advisor to give you advice on which of these investment is the most suitable to your needs.

In some cases, you may be willing to accept the risk of your SIPP as part of your investment. However, if you are aware of it, keep in mind that this may go against you if you ever want to seek out compensation for a bad investment. However, larger risk does constitute larger returns.

At the end of the day, it is up to you assess the risk that each SIPP brings to the table. Make sure to do your research and ask your financial advisor for help. You can look up each SIPP online and discuss their investment potential, fees and pay backs.

When you are looking up different SIPPS, and are getting ready to discuss them with your financial advisor, make sure to consider the following:

Mis-Sold SIPPs

Whilst we would like to think that most financial investments you make will be risk free, there are some that simply won’t be the case. There are always going to be some shadier SIPPs that are solely interested in claiming your money rather than helping you grow it. If you have lost money on a SIPP due to extortionate fees or bad financial advice, rather than your own decisions, it is very likely that you have been mis-sold a SIPP. You can claim compensation on these rogue SIPPs through the Financial Services Compensation Scheme (FSCS)

Bad financial advice is normally one of the main reasons why you may have been mis-sold a pension SIPP. However, there are other reasons why. Could any of the reasons below apply to you and your investment situation?

  • The terms and conditions of your investments were not explained by your financial advisor or in your contract.
  • Your advisor did not have the qualifications or experience they claimed to have (i.e. a qualification from the Pensions Management Institute (PMI) or the Chartered Insurance Institute (CII)).
  • There were additional fees & charges associated with your pension that you were not aware of.
  • There was more risk involved in your pension than you wanted to originally take.
  • Your financial advisor instructed you to transfer your pension from a work place pension.
  • You were cold-called and given a free pension review.
  • You ended up being pressurized into the SIPP and found out it was a tax avoidance scheme.

Unregulated Third Parties

When a SIPP scheme takes your investment, they normally use it in an investment to help you grow your pension pot. However, for those who mis-handled your funds, the investments they made were in non-standard assets. This included luxury foreign properties, commercial properties and diamonds.

A lot of the time, these investments were extremely high-risk. This meant that there was more chance that you would not see any of your investment back, especially if the investment became illiquid. If you were forced into one of these schemes, it is very likely that you could have a mis-sold SIPP compensation case on your hands. You should not wait to see what will happen with this case. After all, if you have lost your pension due to misinformation and misguidance from your financial advisor, you deserve to claim for your losses. Instead, go to a solicitor and see how much you could be due.

Have you heard of any of these mismanaged SIPPs?

In 2018, the FSCS had around £40 million in compensation claims to hand out for those who had been mis-sold a pension SIPP. This is because they were investigating some of the largest SIPPs before they fell into administration. A lot of these SIPPs were investing in non-standard assets or were cold-calling clients into order to transfer their funds into a SIPP scheme that would be sent back to their business. This meant that the pension SIPP owners would usually get enough investments to line their own pockets, whilst the unfortunate investors would lose out, some of whom lost their entire pension funds.

This list contains only a few of some of the biggest SIPP names that have been mis-sold to their clients. What they have in common is that they have all lost their clients’ money or have pressurised investments. They have now either gone into investigation from the FSCS. Some are even being sued under a fraud case.

Gowing Law Solicitors have already had successful claims made against some of these mis-sold pension SIPPs. We aim to ensure that all of our clients are happy with their settlements. It is not fair that some larger SIPP schemes can get away with mishandling their client’s money. Most of our clients have spent a life time earning these funds for their pension.Therefore they do not deserve to lose out. Here at Gowing Law, we are on your side and will do everything we can to make sure you are rightly compensated against even the biggest SIPP names.

How to handle a mis-sold pension SIPP

If you believe that you have a mis-sold SIPP and are due compensation, the first thing you have to do is consolidate the evidence that you have. This could include written communications, signed documents or information packs. What this evidence needs to prove is that you were unaware of the investment you were getting involved in. You need to show that you were unaware of any of the risks or potential pitfalls that the investment had. Go through your documentation carefully and highlight anything that you think may be of importance.

You may also want to consider writing a letter of complaint to either the SIPP, the business that now owns the SIPP, or the FCA. That way you can make them aware of your case and the action you intend to pursue. You may think that this may make your case more complicated, but it is actually the opposite. If a company knows that they are in the wrong then they may simply agree to your terms and conditions to avoid any more legal trouble.

From there, it is time to get a legal specialist on board to help with your mis-sold pension SIPP case. They can offer you advice that is fully personalized to your case. With their experience you will find that the case will move smoothly and you will get the compensation that you deserve.

Gowing Law Solicitors can help with a mis-sold SIPP compensation case

We understand that pursuing a mis-sold SIPP pension case can be quite daunting on your own. That’s why our trained SIPP mis-selling solicitors are here to help you. Gowing Law’s expert team can offer you a free consultation about your case. If you do choose to work with us, we operate on a “no win-no fee” basis. That means no matter what the outcome of your case is, you will always come out on top.

Feel free to get in contact with Gowing Law Solicitors now to discuss your mis-sold SIPP. We would be happy to offer you our advice. Call 08000418350 or email You can also contact us directly by either using the Mis-sold SIPP form or by using our direct messenger on our contact page.

Have you read our other law blogs?

Here at Gowing Law, we pride ourselves on keeping our claimants informed about the latest information. With the current pandemic, the laws of the UK are constantly changing. That’s why it’s important to keep up-to-date with the latest law info. Our blog page contains facts and tips about mis-sold pensions, PPI tax reclaims, mis-sold mortgages and much, much more. Feel free to scroll through our blog to see if anything catches your eye. Better yet, tell us what you want to see in our blog! Please contact We would be happy to help.

We hope you enjoyed reading our latest Gowing Law blog!

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