A SIPP is a pension plan designed for the more savvy investor, it requires a 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.
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 a 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.
Have you been effected?
If you have a SIPP pension you may be cold-called by people claiming to be your trusted IFA who will recommend transferring your SIPP investment into a UCIS. They will use a seemingly legitimate name, with the promise of low risk, high returns. These are often scams, where the actual investments are nothing more than hot air.
What can I do?
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.
Contact Henderson Lawyers if you or someone you know has been effected by anything like this!