What compensation can you expect from a SIPP claim?
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Made a SIPP compensation claim against your pension provider? Find out what pay-out you can expect.
Over the past few year’s mis-sold pension claims in our country have reached a record high and it seems the volume of pay-outs have doubled in the space of just two years.
The sums of money that are involved in these scams are often huge which results in people being left in utter devastation and completely unsure of what to do next.
Mis-sold pension compensation
The good news is that as the years go on the number of mis-sold pensions that have been rightly compensated back to the victims keeps on rising.
The Financial Times reported that pension mis-selling related rewards amounted to more than £40m in 2018, which is more than the £37.5m in 2017 and double the £20m in 2016.
In comparison, the rise of pension transfers has grown even bigger over the years as £37bn of pensions were moved in 2018 compared to 2014 when £5.4 bn was moved. The growth in these numbers means that it is getting even harder for people to spot the scammers. Read more:
Is it worth claiming?
If you feel like you’ve been affected by one of these scams, then APJ can help you along your journey and make sure you get back what is rightly owed to you.
The Financial Services Compensation Scheme (FSCS) only deal with complaints where the company in question was regulated by the Financial Conduct Authority and has gone into administration. This means that the company at fault is very unlikely to be able to pay the complainants their rightly owed compensation. The FSCS offers a lifeboat scheme to those affected however the amount of compensation awarded is capped, sometimes leaving people with less than they invested.
Similarly, the Financial Ombudsman Service (FOS) deal with complaints made about FCA regulated companies where they have jurisdiction ver complaint resolution. If they look at your claim and they decide that they are able to help you then the FOS will advise the company to work it out for themselves and put the customer back into the right position.
How much will you receive?
The overall success of a claim and the amount you could be awarded will vary individually from case to case.
Last year a report put out by Choose stated that, the average compensation claims are currently sitting around £29,000 for private pension and £50,000 for final salary pensions. Read the FSCS report for more on this here.
If your investment was held within a SIPP or a Defined Contribution pension and the UK-regulated provider fails, then the FSCS may be able to pay compensation up to £85,000. Read more:
Claim with APJ
Claimants will be able to pursue their claims through the Financial Services Compensation Scheme (FSCS), where they will be able to potentially claim back up to £85,000.
It’s likely that many clients will have lost more than £85,000, and as a leading firm dedicated to achieving justice for our clients who have been affected by the wrongdoings in the SIPP industry, we will be pursuing further litigation to aim for our clients to get further redress.
If you have been mis-sold an investment APJ wants to hear from you.
“Clients who receive compensation from the FSCS should seek advice from a regulated IFA about their financial future and their retirement funds.”