Self-storage Units

Mis-sold Storage Pod Investments

Storage pod investments have been in the spotlight in recent years with increasing numbers of unhappy investors reporting issues with their schemes. Most recently, SIPP provider Carey Pensions was taken to the High Court by a client who claims they were mis-sold a StoreFirst investment. The Financial Conduct Authority (FCA) was allowed to submit evidence in the landmark case, which is currently awaiting judgement.

Storage pod investments work by the investor buying a certain number of storage pods from storage companies such as StoreFirst, which then manage the rentals of these units to customers. It is the fees paid by these customers to rent the units that create the potential for a high return on investment.

Unfortunately, storage pod investments are unregulated, carry high levels of risk and are usually unsuitable for inexperienced retail investors. Despite these pitfalls, these storage pod schemes are often marketed to inexperienced investors as sound investment opportunities, leading to significant losses for the customer. In these cases it is possible for customers to seek compensation and recoup some of their losses.

Did you have a SIPP investment?

A self-invested personal pension (SIPP) is a scheme that gives you a higher level of control over your own pension. This means you get access to more choices on where you can invest your retirement fund, allowing you to manage your own investments and savings, rather than relying on a pension company or fund manager. The appeal of such a scheme is clear, but the risks associated with it are sometimes not made obvious to investors.

Mis-sold SIPPs have become the subject of an increasing number of complaints made to the Financial Ombudsman Service (FOS) and the Financial Services Compensation Scheme (FSCS).