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MP calls for crackdown on unscrupulous financial advisers

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Providers of self-invested personal pension (SIPP) schemes and untrustworthy financial advisers have been called “unacceptable” in their current form by MP Frank Field.

Financial advisers and regulation

The politician stated that financial regulators are partly to blame. He believes more could be done to protect vulnerable savers.

In an open letter to the Financial Conduct Authority (FCA), Mr Field raised his concerns over the number of people transferring out of defined benefit schemes.

He said: “Not all SIPPs are bad but they can lead to bad things. The organisations that run SIPPs have a huge duty to prevent themselves being agents to rip off of the most appalling kind. First-time investors coming into very substantial sums of money can be robbed of their savings.”

British Steel pensions

The concerns came following the British Steel pension scandal earlier this year. Members of the scheme were forced to make changes to their pension. This left many people open to financial mis-selling.

Thousands of people without a high level of investment knowledge opted to transfer their pension into SIPPs. The MP fears that these people were encouraged to invest their pension pots into more high-risk schemes by “dubious” financial advisers.

Financial mis-selling

Financial mis-selling occurs when a financial adviser or introducer sells a product that is unsuitable for their client. This could be due to investors being unaware of the details of the scheme or the level of risk involved.

The role of a financial adviser is to offer you investments tailored to your individual needs. If they offer a scheme that isn’t appropriate for you, you may be at risk of mis-selling.

If you believe you have been mis-sold an investment, get in touch today. Our expert team can provide you with advice and resources to help you start your claim.