When dealing with sophisticated financial arrangements (SIPP is one of them), you need advice from a pension SIPP expert you can trust. Luckily, many financial advisors are professional and diligent in what they do. However, mistakes do occasionally happen. In some cases, SIPP financial advisors do things they should not be doing when handling a pension SIPP. If you have been paying for a pension managed by your financial advisor and ended up losing your money, you can make a mis-sold pension claim. This article will discuss what SIPP pension is and what qualifies you to file for a claim. Read on to find out!
What is a SIPP Pension?
Self Invested Personal Pensions are designed to offer better returns than investment funds or standard pensions. In this case, an individual uses their pension pot to make several investments into funds. Over a certain period, these funds’ value goes up, giving the individual a healthy return to finance their retirement.
A SIPP pension is that which involves an individual moving their pension funds into extremely high-risk investments. These pensions carry a risk because your investment can either decrease or increase in value. This means that you can get less money back than the amount you invested. This type of pension allows an individual the flexibility to invest their pension in a manner they prefer. SIPP pensions are meant for individuals with experience in investing and know-how to manage their own funds and regularly switch their investments.
Making a Claim for Mis-sold Pensions
There are certain situations that can qualify for a mis-sold pension claim. The criteria discussed below highlights the most common areas for SIPP pension mis-selling.
· The explanation of risks: Were there any risks linked to the pension scheme that the financial advisor did not explain to you?
· The suitability of the investment scheme: Are there chances that the SIPP investment was an unsuitable scheme? Even after learning that the scheme is not suitable for you, did the financial institution still advise you to move your existing private pension funds to a higher return scheme?
· The unexplained fees: In your pension scheme, were there any unexplained fees? Did you find any additional costs that you hadn’t planned for? Were these fees attached to the SIPP investment that you were not made aware of from the beginning?
· Pressure selling: When you were taking your SIPP pension, were you under pressure to move your pension into a scheme you were not comfortable with or didn’t actually want?
· Losing of the investment: At the end of the pension scheme, did you lose your investment? Are there any losses that have occurred as a direct result of the financial pension scheme?
There are cases where SIPP fund managers have been found working with unregulated third parties. This can be very dangerous because if an unregulated third party manages your investments, you don’t have control over your funds’ destiny. Whenever any risky investments are made, you won’t be able to stop or control them. In case something backfires or goes wrong, the FCA won’t protect you because third parties are not regulated.
This kind of situation has resulted in many people losing a large percentage of their SIPP pension funds— in some cases, they lose all of the funds. If this happens to you, you can claim your funds. You can end up reclaiming your funds and using them on a better scheme.
Mis-managed Pension SIPP Compensation
Calculating the total amount of money you will receive for your claim is a complex process. It is of essential to keep in mind that you may be entitled to this claim if the Pension SIPP mismanagement is approved. You won’t spend anything on finding out if you qualify to make a pension SIPP claim. If you don’t have a SIPP claim, get professional solicitors to handle the situation for you.
The Role of Financial Advisers
Financial advisor has to guide their client to make wise financial decisions. They owe their clients the duty of care, not just in the products they suggest but also in how they are managed. In case you have lost funds because your pension SIPP has been mismanaged, you can make a SIPP claim.
Many solicitors deal with any form of pension. You can go for one that deals with compensation and mis-selling of different types of pensions. This can include SIPP mis-selling and any other kind of pension.
It is vital to work with a company regulated by the Solicitors Regulatory Authority. Furthermore, they should always keep their communication lines open, making it easier for you to communicate whenever there is a concern. Sometimes, determining whether you have been affected by incorrect pensions or SIPP mis-selling can be a very complicated process. Let experts handle it for you.