Duped savers could each pocket a £50,000 windfall due to their underperforming pension schemes as part of a mammoth SIPP scandal engulfing the UK. £10 billion worth of badly performing SIPPs (Self Invested Personal Pensions) are believed to have been mis-sold to hundreds of thousands of people by unscrupulous financial advisors.
Potential victims are being urged to check if they can reclaim huge portions of their lost cash and the government has set up a special £120 million fund to compensate losers so far. A maximum £50,000 compensation sum is currently available from the large fund managed by The Financial Service Compensation Scheme and the figure is set to rise by 75 per cent to a £85,000 maximum in the next nine months as claims grow.
The Financial Ombudsman however are allowed to raise their compensation ceiling and can award up to a further maximum of £150,000 for many cases.
The SIPP scams involved unscrupulous Financial Advisors preying on savers who were promised massive returns of up to 20 per cent a year only for their savings to be squandered on get rich quick schemes including investing in airport parking, holiday properties and green energy projects.
The Financial Conduct Authority revealed one in eight savers think an advisor has mis-sold them a financial product such as a pension.
The regulator the Financial Conduct Authority (FCA) has begun conducting the Financial Lives Survey, where it speaks to thousands of people aged over 18 to find out more about their use of financial services. And the mis-selling of investments sadly featured quite prominently.
According to the survey, around one in eight people who have received financial advice in the last year claim that an adviser has mis-sold them an investment or pension product at some point.
The FCA itself noted that this is likely to be an underestimation, so in truth we are looking at hundreds of thousands of people who may have been duped into making questionable investments in their SIPP.
If you are concerned that you may have been mis-sold an investment, then don’t panic. It may be possible to pursue a compensation claim against the IFA involved in the investment or the provider of your SIPP.
Contact us today on 01942 619911 to speak to one of our advisors who will be able to establish if you have a claim. Don’t delay as there is a 6 year time limit on claims starting from the date that your pension was transferred.