Making the choice of how to invest your pension pot can be a daunting task. Choosing a self-invested personal pension (Sipp) comes with risks. Knowing which Sipp providers to invest with can be confusing as there are so many. If you’ve invested with the following Sipp providers, you should review your investments. This is because there’s a chance you could have been mis-sold.
Are you familiar with Ethical Forestry Ltd, the Sipp scheme under investigation by the Serious Fraud Office? You probably recognise Liberty Sipp. Liberty Sipp was one of the most prominent providers of this scheme. It is reported by the FT Adviser that thousands lost a minimum of an £18,000 investment via the Sipp provider.
However, Liberty Sipp denies any mis-selling. The Sipp provider claims it completed sufficient due diligence. They also claim investors were aware of the risks. We recently launched the biggest ever lawsuit made against the Sipp provider.
The Lifetime SIPP Company Ltd
Following reported links to unregulated investment schemes, this SIPP provider recently fell into administration. The Financial Services Compensation Scheme (FSCS) could see millions of pounds in claims following the SIPP provider’s collapse.
Investors who have been mis-sold a SIPP can claim back their money back even if their SIPP providers go bust. Read our blog for more information on the steps to take to reclaim.
77 people are currently involved in a high court challenge against Berkeley Burke, citing a total of £3.7m in lost funds. Claims range from £6,000 to £160,000 for SIPPs deemed unsuitable for the investors. It’s suggested by lawyers representing the current claimants that over 1,000 people could be eligible to take action against the SIPP provider due to the of mis-selling of SIPPs.
Berkeley Burke is also currently facing criticism in the media for investments into schemes such as burial plots.
Strand Capital DFM
The SIPP provider went into administration in May 2017. The FSCS is currently in the process of compensating more than 3,000 investors who have been affected. The eligibility criteria of £50,000 will apply to compensation payments. This means that investors with more than a £50,000 stake are could stand to lose some of their investment.
It’s been widely reported in the media that SIPP administrator Carey Pensions is facing a legal challenge in the High Court. The firm is accused of mis-selling SIPPs through the use of unregulated introducers.
Lawyers representing the claimants argue that Carey Pensions did not carry out the required due diligence to ensure the investments were suitable for the individuals concerned.
The lawyers for the Sipp providers dispute this, placing the blame with the unregulated introducer Commercial Land and Property Brokers. They argue Carey Pensions could not be responsible for the decision by individuals to transfer their pension because they operated on an execution-only basis and CLP Brokers provided the advice.
The case is ongoing and the final judgement will have a big impact on the SIPP marketplace. Read more on Carey Pensions in our latest blog on the case.
If your SIPP provider didn’t inform you of the risks involved when investing, you may be entitled to compensation. Get in touch with our experienced legal team today for advice.