You must have come across the news of people going for the self invested personal pension claims (SIPP claims) for the loss they have incurred through the schemes. The SIPPs are the UK government approved schemes that gives the pensioners liberty to plan and manage their retirements their way. But it also have come out that many people have been mis-sold investment as a part of the SIPPs have lost a big chunk of their pension amount.
Reasons to file SIPP claim:
As an investor you can file a claim for a mis-sold SIPP and here are the reasons given below:
- If you feel that you were advised by the advisor to switch to the SIPP only for his financial gains i.e. the commission.
- If you feel you are not warned earlier about the annual management fee and about the schedule of charges against each transaction.
- If you exceed the annual tax free limit, you will be forced to pay 55% in income tax that will leave you significantly worse off than what you would have been in a conventional or alternative pension schemes.
- If earlier you were not appraised about the potential risks involved in the scheme or you think half of the facts have been revealed with concealing important information then you can proceed for a claim too.
- If the advisor have promoted the scheme as a tax shield rather than leaving out the poor return from the scheme.
- And lastly if you think that the advisor have kind of ditched you or not paying heed to your queries after you have invested in the SIPP.
One or more reasons are enough to file a claim against the SIPP and for that you need a good c=solicitor to put your case forward and fight.
How to complain?
Always complain to the SIPP provider first, if nothing turns out from that then after eight weeks turn to the financial ombudsman service. If in case the advisor has ceased trading then file complaint at the financial service compensation scheme and there are chances you may get compensated up to £50,000.
And finally, the SIPPs are still a worthwhile way to enhance the quantum of your pension fund and all you need to be is extra careful in dealing with it. Since the risk involved in SIPP is somehow known to you its better you tread carefully and avoid losses.