Tag: mis-sold pensions

How to Choose the best Self-Invested Pension Plan (SIPP Scheme)

Posted on May 22, 2020 by - Blog, Pension Claims, SIPPs, Uncategorised

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 info@gowinglaw.co.uk. 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 info@gowinglaw.co.uk. We would be happy to help.

We hope you enjoyed reading our latest Gowing Law blog!

Are you the Victim of a Mis-Sold Pension?

Posted on May 12, 2020 by - Blog, Pension Claims, Uncategorised

No one deserves to be the victim of a mis-sold pension. As we get older, we deserve to enjoy our golden years with a secure pension to support our livelihoods. After all, you have worked hard to earn this period of relaxation. However, if you have opted out of your job’s pension scheme, you may have been unintentionally mis-sold a pension by an unscrupulous firm or financial advisor. Whether you want to move pensions or are considering a specific SIPP, it’s important that you are aware of all of the s that come with investing pensions into money schemes.

Here at Gowing Law Solicitors, we understand that many people investing in more high-risk schemes are simply looking for a stronger pension fund altogether. So, if you have already become the victim of bad financial advice, we can help you make sure that you receive the compensation that you deserve. Today, we are going to learn what sort of high-risk pension schemes are out there that could make you lose money!

The Three Types of Pension Schemes

Before you consider whether or not you have been the victim of a mis-sold pension, it’s important to know what sort of pension you already have. There are three options available to you:

For both your defined benefit pension and defined contribution pension, you will usually get around 25% of your nest egg tax free. However, keep in mind that any private pension arranged by yourself may go up and down depending on what sort of investments were put into it. The value of how your pension pot will perform will then depend on how well your investments perform.

picture-of-low-risk-investment-tips

Automatic Pension Enrollment

One of the main questions that you need to ask yourself before you retire is ”How much money will I have to live on?” For most people, the answer is going to be that it will be significantly less than what you may have been earning whilst you were employed. If you don’t want to be living on the bare minimum, then you will need to consider whether or not it’s worth it to invest in a state pension all together. Now, Martin Lewis, in an interview on This Morning gives some useful tips on improving the state of your pension. But is this really enough?

If you are thinking about leaving your “auto-enrolled” pension, you may have been looking into a privatized financial scheme. This would help you take the money that you have saved, invest it in a validated scheme and then reap the reward.

Pension Investment Schemes

There are quite a few schemes that you can invest in.

  • SIPPs (Self- Invested Personal Pensions)

A SIPP is an investment scheme where you can use pension funds to create a higher return. Whilst you can get advice from your financial advisor on these plans, remember that they are more suited to experienced investors. This is because the bigger risks tend to have more returns. Try to avoid investing all of your pension into one SIPP, that way it is less likely you will be too badly impacted by a mis-sold SIPP.

  • GSIPPS (Group Self-Invested Personal Pensions)

GSIPPs are offered by employers to build up a larger retirement fund. They focus on a group of people under a specific scheme. Each person under the scheme has an individual SIPP contract between you, the other members, and the pension provider. Your employer can contribute to your GSIPP, but they may also need your contribution as well.

  • SSASs (Small Self-Administered Pension Schemes)

This scheme is a workplace pension that is established by key members of staff and company directors. They can offer this scheme to any employee who wants it. The best part of these schemes is that you can choose precisely how your money is invested. You can even decide to invest in the company you’re employed by. Just make sure you know all of the risks of the investment before you confirm your interest.

  • Private Sector Investments

A private sector investment can be high-risk, as you will need to look into the potential investments yourself and consider their risks. The private sector includes a wide range of industries that can be sponsored and return your investment at a higher price. This should increase your standard of living.

  • Defined Benefit Transfers

You may decide to transfer your salary-defined pension in exchange for cash. This is what is known as a defined benefit transfer, aka. A final salary transfer. You must then invest this money into a defined contribution scheme, aka. A personal pension or a SIPP.

The three that you are most likely to invest in are SIPPS, SSAS and Defined Benefit Transfers. This is because the majority of them do come with less risk. You can find out the best schemes for you and your pension through a reliable financial advisor. But be warned, it is also useful for you to do your own research on the schemes that you have been recommend.

The Signs of a Mis-Sold Pension

bad-investment-tips

When you are deciding on which pension scheme is right for you, it is essential that you get solid advice from a financial advisor that can steer you in the right direction. However, not all pensions are the perfect fit for everyone. Sometimes your advisor can tell you to invest in the wrong type of pension. This is where there is potential for you to make a mis-sold pension claim.

If you have been mis-sold a pension, you need to consider:

Was it sold to you due to bad financial advice?

If you did not understand the full risk of your pension investment, and therefore lost your funds due to it, this could mean that you are due some form of compensation. This is because you were not made fully aware of what sort of financial scheme you were getting yourself into. Instead, you lost out due to the negligence of someone else. This means you deserve to be compensated for your losses.

There are other ways that you could have been mis-sold a pension. Check out some of our examples below!

mis-sold pension infographic

What really brings these types of claims together is the fact that you did not have any knowledge of them. You were promised a certain type of pension scheme and, instead, received something completely different. You are the victim of negligence, and your investment was used for selfish reasons. This may have put you in a notably worse financial position than when you first started. If you were really unlucky, you may have lost your entire pension fund altogether! That’s why, experienced mis-sold pension lawyers, like Gowing Law Solicitors in Manchester, are here to help you claim any compensation that is owed to you.

Don’t forget about mis-sold SIPP schemes!

As you can see from our infographic, there are quite a few pension schemes that have the potential to be mis-sold to you. Mis-Sold SIPP schemes work in a similar way, meaning that you will have to keep an eye out on the invested company and any advisors who recommend you the scheme in the first place.

Here at Gowing Law Solicitors, we want to make sure that you know exactly which bad SIPP schemes are out there. That way you can know precisely whether or not you have a compensation claim with them. This is why we have started creating a list of mis-sold SIPP schemes. This includes:

  • The Dolphin Trust / The German Property Group
  • Berkeley Burke
  • Harlequin Properties
  • Liberty SIPP
  • Fast Pensions
  • TailorMade Independent
  • One Stop Financial Services
  • Guinness Man & Trust
  • Point York SIPP

Make sure to check out our Mis-Sold Pensions page for more information on SIPPs!

Gowing Law & Successful SIPP Claims

If you are considering working with a Gowing Law pension solicitor, we want you to know that you have an experienced claims lawyer on your side. Our team of mis-sold pension specialists have already won legal battles against problematic SIPP providers and financial advisors. This includes:

  • Berkeley Burke
  • Harlequin Properties
  • The Dolphin Trust/ The German Property Group

It can feel intimidating going up against a large financial investment company on your own. But you don’t have to! With the help of a specialist mis-sold pension lawyer, we can help you get the compensation that you deserve and much more. No one deserves to have their retirement fund taken away from them due to false promises. That is why our expert pension claim advisors are here to assist you with your case.

What do I do now?

No matter how big or small your claim is, it is worth pursuing. You deserve compensation. After all, you invested your hard-earned money and expected something in return. If you have experienced a financial loss due to your pension investment, it’s time for you to get help. You can work on your compensation on your own, or perhaps visit the UK Government’s website for help, but having a solicitor on your side can simplify the process and increase your chances of a win.

The first thing you need to consider is the amount of information you have on your pension. No matter what you have been mis-sold, the more information you have on it the better!

The documents you have need to:

  • Prove you were unaware of the risks of the investment
  • Show that you were promised more than you received
  • List the main clauses of the agreement and what was expected from the financial advisor
  • The details of any parties that are involved
  • Any signed documents or letters of communication

If you want more advice on what you need, make sure to contact the FCA or the Financial Ombudsman to see what legal powers you have. You can also make the company aware that you plan to launch a complaint against them. From there, contact Gowing Law Solicitors to help prepare your case. Our trained lawyers can help make things simple for you and get all of your information ready for any legal battles that may ensue.

How long will it take to make a case?

Most people try to leave their mis-sold pension case in order to see how things change in the future. However, we would recommend that you get in contact with Gowing Law as quickly as possible. You deserve compensation and we can get it to you in a timely manner.

Remember, how long it takes to get compensation depends on how big your case is. Some mis-sold pension claims are simpler than others. Therefore some may just take a few weeks, whilst others make take a few months. Please make sure to be patient with you pension claim solicitor. They will give you the best information possible and how you can move forward

How much could I claim?

Again, this depends on how much you have put into your pension investment. Each claim will depend on an individual’s circumstances. That’s why some claims are worth thousands of pounds. The Financial Services Compensation Scheme (FSCS) can provide you 100% protection on a pension mis-selling claim for up to £50,000. Work with your solicitor to see how much you could be owed!

What do you want to read about next?

We want to make sure that you are up-to-date with the latest law blogs. That’s why we are always uploading new topics to our blog page. This includes topics on immigration visas, the basics of PPI tax claims and even information on Covid-19 & Wills!

If you’re interested in learning more about one of our specific services, please get in contact with Gowing Law Solicitors today through our email: info@gowinglaw.co.uk. We want to write about everything that you want to know.

Contact Gowing Law Solicitors today to learn more about mis-sold pension schemes

Mis-sold pensions are never fun to deal with on your own. That’s why Gowing Law Solicitor’s trained pension mis-selling specialists are ready to offer their help. We offer free consultation advice and work on a “no win- no fee” basis. That means you will not have to pay if we do not win your case. Any fees will be discussed with you upfront to ensure you understand what to expect when you work with us.

Contact Gowing Law Solicitors now by calling 08000418350 or emailing info@gowinglaw.co.uk. You can also use our direct chat on our contact page to message our staff about your enquiry.

From everyone here at Gowing Law, we wish you the best of luck with your mis-sold pensions claim and look forward to working with you soon.