A SIPP is a pension plan designed for the more savvy investor, it requires much more hands-on approach than a regular pension, which can result in much greater results at a higher risk, perfect if you know what you’re doing. Often people want a bit of advice when investing their hard-earned money, so they will speak to an Independent Financial Advisor (IFA). They will give information on investment schemes and professional advice in the investor’s best interest.
What is a Unregulated Collective Investment Schemes (UCIS)?
Collective Investment Schemes (CIS) can be a great way to grow your pension fund, these are often in things like stocks and bonds. If a CIS is not officially recognised, or authorised, it is known as an Unregulated Collective Investment Scheme (UCIS). These are not under the same restrictions when it comes to the investment powers and operations. They are risky investments; under the Financial Conduct Authority (FCA), they should not be promoted to the general public.
How Do I Know I Have a SIPP Claim?
If you have been told by an IFA to move your pension into a SIPP, you may have been mis-sold due to a number of reasons:
• Not a Sophisticated Investor – If you have limited experience of investing or do not earn £100,000 or assets totalling £250,000 excluding the pension.
• Lack of Advice – The risks of investing a SIPP and associated tax implication were never explained.
• False Promises – You were promised you would receive much higher returns.
• Bad Advice – You were advised you could avoid tax by swapping your pension to a SIPP.
• Lack of Understanding – You never felt fully confident or knowledgeable about what you were investing in.
• High Costs – You were never told additional fees or they were higher than were initially stated.
How Do I Make a Claim?
If you have spoken to an IFA about where to invest your money, you can make a claim against them to try and retrieve your investment, or if the IFA has since stopped trading you may have access to the Financial Services Compensation Scheme, which can help you claim back up to £50,000, recovering some of the damage that may have been caused. Get in touch by filling in the enquiry form.