The Financial Ombudsman Service (FOS) has upheld a self-invested personal pension (Sipp) mis-selling complaint. It is related to a high-risk investment made within a Guinness Mahon Sipp.
The complaint is unique in receiving a decision while many other cases appear to be halted.
Guinness Mahon SIPP Case
The FOS adjudicator concluded that Guinness Mahon should have refused the introduction of business. This is because they were aware the client was given advice by unregulated introducer Avacade.
The adjudicator has stated that they should have had doubts over the competence and motivation of Avacade. Guinness Mahon should also have been aware that its business model was likely to result in consumer detriment.
The FOS has ruled that Guinness Mahon should have refused the introduction of business and should pay fair compensation.
What this means?
One of our leading financial mis-selling specialists Glyn Taylor, said: “We welcome this decision by the FOS as it is consistent with the Financial Conduct Authority’s view that Sipp operators should not accept high-risk, illiquid investments in a Sipp as they are manifestly unsuitable as a pension investment.
“We’re aware that very few Sipp decisions are being made by the FOS. We’re pleased that due to the hard work of our expert legal team our client has been awarded redress for the losses they’ve suffered.
“We also expect that FOS should make similar decisions in cases that are pending against Liberty Sipp.”
Guinness Mahon now has the opportunity to appeal the decision.
The decision comes after we issued five legal cases against Guinness Mahon. We allege Guinness Mahon worked with unregulated introducers to facilitate Sipp investments into non-standard assets which were not suitable for their needs.
The cases relate to investments between 2013 and 2016, into schemes including Ethical Forestry and Global Plantations.
If you had a SIPP with Guinness Mahon get in touch with our legal experts today for advice on whether you’re also eligible for compensation.