SIPP claims are currently on the rise. In the last year alone, £88m has been levied by the Financial Services Compensation Scheme (FSCS). Additionally, the FSCS is likely to pay out even more this year.
SIPP claims on the up
The latest figures from the Financial Ombudsman Service (FOS) show a rise in SIPP claims. In 2017, the FOS received 1,575 claims about SIPPs. This is a five percent rise on the previous year’s claims.
But why are a larger number of people making a claim?
Pension freedoms
Pensions freedoms may have attributed to the rise in SIPP claims. Following their introduction in 2015, people have had more control over their pension pots. Unfortunately, some opted to invest in schemes that were much riskier than expected, in some cases losing their life savings in the process.
Investment knowledge
All SIPPs come with a level of risk. SIPP claims are on the rise as many investors were not fully aware of the risks involved before investing.
Advisors should always explicitly state the risk level of an investment before allowing their client to invest. Failure to do so can result in claims for mis-selling.
How do I know if I’ve been mis-sold a SIPP?
There are many reasons a SIPP may have been mis-sold.
SIPPs were generally meant for people with a healthy pension pot, a degree of investment knowledge and a willingness to invest in higher risk products. While this applied to many people, there were also many people who didn’t fit the criteria. This meant that, if the scheme failed, there was no return on their initial investment.
All investments have an element of risk but unregulated ones like storage pods, overseas property schemes and, of course, schemes like Ethical Forestry don’t have any compensation at the ready in case they fail, meaning investors could lose everything.
If you were not properly advised on the risks involved before investing in a SIPP, you may be entitled to claim. Get in touch today to start your claim.