Following the pensions mis-selling scandal, financial advisers are now more wary of the schemes they endorse. Self-invested personal pension, or SIPP firms, that don’t have an untarnished reputation are now being avoided.
A number of providers offered unregulated investments. These later failed, costing investors millions. A key issue with these schemes is the lack of protection. In the event of failure, non-standard investments do not offer any level of compensation to investors.
Since the investments were made, the market has changed. Providers have seen increased scrutiny by regulator, the Financial Conduct Authority (FCA). This includes tough new capital adequacy rules for SIPP firms offering non-standard assets.
SIPP firms impacted
As a result of tougher regulations, SIPP firms such as Liberty SIPP and James Hay no longer accept these investments.
Parent company of James Hay, IFG, is currently tied into a legal battle with HMRC. This follows a number of non-standard investments offered to James Hay’s clients. One of the main investments named is Elysian Fuels, a bio-fuels scheme.
Liberty SIPP’s dealings with unregulated schemes have resulted in the firm being investigated for fraud. Investors currently hold money in Ethical Forestry Ltd.
The tightening of rules is a result of a large number of people being mis-sold SIPPs. If you were offered a scheme with a higher level of risk than you were told, you may have been mis-sold a SIPP.
You may also be able to complain if your advisor did not explain all aspects of the scheme. Just because you didn’t lose money, it does not mean that the advice you were given was correct.
If you think you could have been mis-sold a Sipp, get in touch today. Our expert team can advise you on the steps to take. We work on a no win, no fee basis. This allows you to have full access to advice and resources without having to pay until we have won your compensation.