The Pension Mis Selling Scandal Unfolds

Beat the Banks have already?recovered millions?for customers who were mis-advised to put their pension into a SIPP (Self Invested Personal Pension?and then to invest in?unregulated assets?(UCIS) or bonds??Our average successful claim is over ￡60,000.

Most were completely unaware they’d either lost money or the true extent of their losses. Glossy brochures typically offered as much as double digit returns, but what you’re never told about is the commissions they carry for sellers. As much as 40%. Many of these “advisers” weren’t even regulated.

SIPPs are only suitable for a tiny percentage of pension holders who are experienced investors, who understand risk, have a capacity for loss and certainly have more than ￡100,000 to invest. They are normally much more expensive to run than standard pension schemes.

As the mis-selling scandal has unfolded, more and more SIPP companies have collapsed under a barrage of claims from?disgruntled pension holders. For the first time figures from the Financial Services Compensation Scheme (FSCS) have now revealed just how many claims have been settled and the amount of compensation paid out and with the recent successful appeal against?Carey Pensions, even more could be due for already successful claimants.

For firms failing from 1 April 2019 the compensation limit is set at?￡85,000. Before it was ￡50,000. Since the complaints starting flooding in the FSCS have now paid out more than?￡695 million. This year the bill is fully expected to top?￡1 billion?and all the failed SIPP providers singularly failed to employ the correct level of due diligence in relation to these non-standard high risk, illiquid assets.

The gallery of shame makes horrific reading:

Liberty Sipp?(GCSC) – Over 1,750 claims paid at a cost of close to ￡11.5 million.

Guinness Mahon?– Over 1,100 claims at a cost of over ￡22 million.

Pointon York?– Over 200 claims and at a cost of over ￡2 million.

Greyfriars Asset Management?– Close to 450 claims and a bill of ￡1.4 million.

Berkeley Burke?– Just under 1,800 claims and over ￡28 million paid.

GPC Sipp (Guardian)?– Well over 1,500 claims costing over ￡57 million.

The Lifetime Sipp?– Over 1,000 claims and close to ￡33 million paid out.

Brooklands Trustees?– Nearly 1,400 claims and a bill of close to ￡31 million.

Stadia Trustees?– Close to 720 claims and a cost of just under ￡20 million.

Montpelier Pensions – just over 170 claims and nearly ￡3 million paid.

If you were advised to transfer any type of pension into a Sipp,?Beat the Banks will check for free?the advice you were given. It couldn’t be simpler. You call –?01382 200474?and we do the rest. If you prefer, please complete our enquiry form and we will be in touch. You are also more than welcome to pop in our office at – First Floor, 87 Commercial Street, Dundee, DD1 2AB.

**You don’t have to use the services of a regulated claims management company. You can make a complaint yourself for free directly to whomsoever you believe mis-sold the financial product. Free advice also available from the FOS and the FSCS.