Mis-sold Pension

Mendelsons solicitors specialise in acting for clients who have been mis-sold pension investments and lost all their money. Most of the clients we act for have been cold called and persuaded to move their pension from a safe investment into a high-risk venture without the risks properly being explained.

Their pension money is moved into a SIPP which is a Self Invested Personal Pension and then ‘invested’ into a product that fails, making the investment worthless. The mis-selling arises because the investor was given unsuitable advice, the risks were not explained and the product was not right for the investor.

In recent years many investors have transferred their pension funds into unsuitable SIPPs or a Qualified Recognised Overseas Pension Scheme (‘QROPS’) and into high-risk unregulated funds.

Most of those funds were invested into high-risk, complex and illiquid investments that were totally inappropriate and unsuitable resulting in the investment failing and being rendered worthless.
We can investigate whether your SIPP or QROPS was mis-sold and if so we can act on your behalf in making a claim for compensation.

For the mis-selling to have taken place you would have moved your pension fund into a SIPP or QROPS and a regulated business such as an IFA (Independent Financial Adviser) or SIPP company would have been involved in the process.

Fortunately, they are regulated by the FCA (Financial Conduct Authority) which obliges them to have professional indemnity insurance which will payout in the event that the claim is successfully made.

Whilst many of the companies that sold SIPPs are no longer trading it is still possible to make a claim for compensation via the Financial Services Compensation Scheme up to a maximum limit of £50,000.



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Questions or Concerns

If your claim is settled immediately by the provider who gave the advice, then there is no limit on the size of compensation. However, if it proves necessary to go to the Financial Ombudsman Service (FOS) then there is a limit of £160,000 for complaints about actions by firms from before April 1st 2019, and a £350,000 limit for actions by firms from after this date. If the adviser or business who provided the advice has since ceased trading, then an application could be made to the Financial Services Compensation Scheme (FSCS). The limit to claims made to the FSCS is £85,000 per individual per claim.

Once a complaint is placed with a provider, they have 8 weeks to make a final response. However, in exceptional circumstances, cases may take longer to handle. If a case has to go to the Financial Ombudsman Service (FOS, or, the Ombudsman) for arbitration, then it may take longer. However, most cases do not need to progress to the Ombudsman.

If the firm you were advised by is no longer trading, you may be eligible to make a claim to the Financial Services Compensation Scheme.

Even if you do not have copies of the paperwork yourself for any reason, we can usually obtain it directly from the provider. As such, while it is very helpful, it is not always necessary to have a copy of the relevant paperwork.

Currently there is no final time limit on claims being made, though some claims may be time-barred.
A claim may be rejected by the provider if the advice was given more than 6 years ago, or if the investment was surrendered more than 3 years ago. However, while time barring exists in some situations, our dedication and experience means we may be able to put together reasons highlighting why your case should not be time barred.

You do not need to use a claims management company or a solicitor to make a complaint  to your lender, and if your complaint is not successful you can refer it to the Financial Ombudsman Service, The Pensions Ombudsman Service (in the case of Pension related claims) or the Financial Services Compensation Scheme (where applicable) yourself for free.

After you’ve signed our forms, our team will first obtain the relevant paperwork from the adviser. To do this, we will file a Subject Access Request (SAR) with the provider. They must then disclose all information they hold related to you. Our team will then draw up a detailed complaint report to send to your provider, on your behalf, as to why they believe you were mis-sold the investment.

If the provider rejects this complaint, your case may be referred to the Financial Ombudsman Service, Pensions Ombudsman or Financial Services Compensation Scheme, where deemed necessary and eligible. You will be provided with regular updates on your claim, and will be informed when an offer of compensation is received.

If your claim is rejected by the provider, you have the right to bring the complaint to the Financial Ombudsman Service, Pensions Ombudsman Service or Financial Services Compensation Scheme (where applicable) (FOS) for an independent review.

A Self Invested Personal Pension is a type of pension investment approved by the UK government. It allows experienced investors to personally manage the content of their pension investment, allowing them greater control over the ways that their money is invested. As such, it can appear appealing to many investors as they believe that they will make a better return on their investments. While the product itself is not a bad thing, and can be highly beneficial to some consumers, it is often sold to people who it is not appropriate for.

You can make a mis-selling claim against any advised investment through Financial Claims. If you believe your independent financial adviser provided you with inappropriate advice on your investment, you could be due compensation.