Carey Pensions faces fresh legal claims

Carey Pensions is a Sipp provider that has been hit with a significant number of claims by people looking to be repaid for financial loss they have suffered. If you have taken out a Sipp with this provider then you too could be due Carey Pensions compensation.

Carey Pensions – significant losses

Fresh legal action has been launched against Sipp provider Carey Pensions, claiming that adequate due diligence was not carried out by the firm when accepting Sipp investments. One client suffered a loss of £30,000 after an investment that was made through a Sipp supplied by Carey Pensions failed. That investor is now seeking compensation for the losses suffered. This is just one of the cases that already exist against Carey Pensions and it’s thought that hundreds more people could be affected. Carey Pensions has more than 65,000 members and is currently going through ownership changes. In October, STM Group announced that it had purchased a majority stake in the pensions provider.

Sipp provider responsibilities

Whether Carey Pensions compensation is due turns on the issue of whether Sipp providers should be taking responsibility for helping people avoid unsuitable investments. The current view (after a recent High Court ruling in a similar case) is that a responsibility exists to carry out due diligence on investments to establish whether or not they are suitable. Sipp providers like Carey Pensions have always argued that such a responsibility does not exist. However, the Financial Ombudsman – and now the courts – don’t seem to see it that way.

Issues with Sipps

If you have suffered financial losses as a result of Sipp investments then you are not alone, as thousands of people could potentially have been affected in this way. Sipps are currently running into trouble as a result of a number of issues:

  • Many people have lost a substantial proportion of their pension pot as a result of bad investments
  • Some investors have lost all of their pension and are left with nothing
  • Sipp providers often made promises of very high returns on investments
  • Many investors say that they were promised guaranteed returns on certain investments that haven’t delivered
  • No due diligence was carried out on the investments to make sure that they were suitable

Carey Pensions compensation may be available to anyone who has had similar problems with Sipps.

Carey Pensions compensation – claim today

If you have a Sipp with Carey Pensions and you have suffered financial losses as a result of investments made via the pension plan then now is the time to take action. In the recent High Court decision, Sipp providers were essentially made to take responsibility for the suitability of investments. As a result of this, Carey Pensions compensation could be due to anyone who has invested with the firm’s products.