Long time ago, SIPP was one of the investments that cured all personal pension bills, but now the name of SIPP has been soiled like many other financial services.

In recent years FCA has received lot of complaints on mis-sold SIPP. Whereas, its main purpose is to give you the opportunity to invest your money to make a greater income for yourself, but most financial advisors that are only interested in their gain fails to make you understand the risk that comes along with it

SIPPs are not suitable for everyone, because not everyone wants to invest on various assets. Before you invest, try and seek advice from a professional or independent financial adviser to make sure your underlying investment remain in line with your pension objectives.

Not all SIPPs give the opportunity to invest in full range of allowable investments. Major SIPPs as an investment is not the problem but the providers and advisors pushes this product to pensioners that does not have the capacity and are not able to afford it. They also have failed to flag the risk that the products involves

Constitution of mis-sold SIPPs

  • Unsuitable advice
  • Risk involved were not explained
  • Information needed was not passed across accordingly
  • Fees involved were not made clear
  • Failure in increased pension value has told
  • Factors involved were not explained

Examples of mis-sold SIPPs

  • Storage pods
  • Bio-fuels
  • Hotels
  • Carbon credits
  • Global forestry investments
  • Off-plan properties

Steps to take

  • Find out if you are entitled to any money from the liquidators of the company
  • Check if the form is authorized by FCA
  • If you can’t claim from the liquidator, then you can try out a financial compensation scheme

How much can you get back?

Only the financial loss will be paid for. The highest amount you can get depend on when the firm was declared and default by Financial Servicing Compensation Scheme

  • A maximum of £50,000 can be paid back if it has been declared default after 1st January 2010
  • Before 1st January 2010 only £30,000 can be paid first and 90% of the next £20,000

For example if you lost £20,000, you can get it all back, but if you loss £55,000 you could only get £53,500

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