Did you know, according to a recent FCA report published in December 2018, suitable advice had only been given in 48.1% of Final Salary / DB pension transfer cases? That’s hundreds of thousands of people, who, due to poor financial advice, have transferred their hard-earned money into unsuitable (and often worthless) investments. In many cases, mis-sold pensions have led to either a substantial or total loss of an individual’s pension funds.
If this sounds familiar, you could be eligible to make a mis-sold pension claim – and we’re here to help.
As specialists in mis-sold pensions, we can help to secure any compensation that you could be owed.
What are mis-sold pensions?
Essentially, a mis-sold pension is any kind of pension scheme in which you were persuaded to invest, which involved taking your money out of safe investments to put into a risky or unregulated alternative. These ‘transfers’ are typically sold with the promise of incredible returns and a comfortable retirement. But, in truth, they can lead to devastating financial consequences for an individual.
There are currently four main types of mis-sold pension:
1. Self-invested personal pensions (SIPP)
SIPPs themselves are not a problem. In fact, they can be a great option, giving you more control over what happens to your pension pot. The problem is the subsequent purchase of high-risk and under-performing investments which have higher annual charges and can be impossible to sell on.
SIPP operators have been heavily criticised for their lack of due diligence and failing to conduct sufficient background checks on product providers. This has led to many complaints, against both the financial advisors and the SIPP operators – and if you’ve been misled in this way, you could be eligible to make a mis-sold pension claim. Find out more about SIPP schemes by clicking here.
2. Final salary transfers
A final salary transfer is when your employer looks at your final salary and, based on your last known pay, offers a figure to move across to a new pension product. This kind of transfer is very rarely a good idea. By transferring a final salary pension, you lose any guaranteed benefits as well as risk losing the money in your pension pot. If you’ve been wrongly advised to do this, you may be entitled to mis-sold pension compensation.
Find out more about final salary transfers and get in touch today for expert advice.
3. Small self-administered scheme (SSAS)
This type of pension scheme is usually set up by non-regulated entities (e.g. sales agents, alternative product providers) to hold high-risk and illiquid investments.
Transfers to a SSAS are often made with the intention to avoid stringent safeguarding regulations. However, if you can provide proof that a regulated financial advisor incorrectly advised you to move to an SSAS, you may be eligible to make a mis-sold pension claim.
4. Occupational pension scheme (OPS)
An occupational pension scheme is an account created by your employer to help you save for your retirement. More often than not, they fall into three categories – defined benefit schemes, defined contribution schemes, and cash balance plans – and are very well-regulated. But this is not always the case and, if your OPS was set up by an unregulated entity, you could be entitled to claim.
Start your mis-sold pension claim today for free
If you believe you’ve been mis-sold a pension or have received unreliable advice from a financial advisor, you can make a claim yourself for free through the Financial Services Compensation Scheme, the Financial Ombudsman Service, The Pensions Ombudsman and directly to the person to whom your claim relates; or you can claim on your own insurance for financial mis-selling if you have it. However, if none of those options appeals to you, why not get in touch with us?
Here at Money and Me Claims, our dedicated team has significant experience and unparalleled expertise in successfully securing compensation for our customers. We will find out if you’re entitled to mis-sold pension compensation and work on a no win, no fee basis, which means if, after investigating your case we decide there is no claim or your case is unsuccessful, you pay nothing, and only if we win your case do we charge a fee of 25% + VAT (or if you decide to cancel after the 14 day cooling off period). So, what do you have to lose? Give us a call today on 01236 607952, or fill out our online contact form, and start your mis-sold pension claim today.
Mis-sold Pension FAQs
How do I know if I have been mis-sold a pension?
A good financial advisor should follow a strict code of practice and, when offering advice on pension schemes, there are certain things they should cover to ensure the pension is sold fairly.
For example, they should provide as much information as possible, allowing you to make a fully-informed decision. They should establish your attitude to risk and ask about your personal circumstances, including any health and medical conditions before recommending the most suitable product for you. They must also provide an opportunity to compare the product with others on the market. If your financial advisor failed to do any of the above, you may have been mis-sold and be entitled to claim.
Here at Money and Me Claims, we have a simple ‘two-question’ check:
1. Do you have proof that you received unsuitable financial advice?
2. Can you prove that you suffered a financial loss as a result of that advice?
If the answer to both of these questions is yes, you could be entitled to pension mis-selling compensation and should get in touch with our team of experts today.
How far back can you look into pension transfers?
When it comes to claiming for a mis-sold pension, many people are deterred by so-called ‘time-barring’ rules. These state that, from the point at which you were mis-sold, you have six years to claim – or just three years from the point at which you become aware of the problem.
These are set by the Financial Ombudsman Service (FOS) and are designed to manage the number of complaints that are made. But there are a number of exceptions to these rules, including Final Salary Transfers, which have no time-barring deadlines. Furthermore, if the pension provider has gone bust, you have 15 years to claim through the Financial Services Compensation Scheme (FSCS). If you believe you could be entitled to compensation for pension mis-selling, the possibility of time-barring certainly shouldn’t put you off enquiring about a potential claim.
The bottom line is, no matter how long ago the pension transfer was made, you could still be eligible for compensation. Ultimately, the success of your claim will depend on the individual circumstances surrounding the case.
Here at Money and Me Claims, we believe that every complaint is worth considering. As long as you pass the ‘two-question’ check outlined above, we are happy to look into a potential claim on your behalf – regardless of when the pension transfer was made. Perhaps you were given poor advice this year, last year or 10 years ago? It doesn’t matter. If you suffered financial loss as a result, you could be eligible to make a mis-sold pension claim and should get in touch today.
Is compensation for a mis-sold pension taxable?
In the vast majority of cases, no. Compensation for a mis-sold pension is not taxable and you’re free to do with it as you please. However, we are not tax advisors and any tax advice should be sought from a tax expert.
How long does a mis-sold pension claim take?
This varies depending on the complexity of the case and the financial advisor or pension provider involved. If they’re still trading and wish to fight the case, this could significantly prolong the process, adding months (if not years) to the length of your mis-sold pension claim. By contrast, if they accept responsibility and are quick to respond, it could be resolved in as little as 2-3 months.
Each case is unique and it’s difficult to predict a specific timeframe. But keep in mind, here at Money and Me Claims, we always strive to set your expectations fairly, whilst chasing the claim through to completion as quickly as possible. We find the majority of mis-sold pension claims take around 12-24 weeks to settle through the Financial Services Compensation Scheme and 6-12 months with the Financial Ombudsman.
Why seek our help for a mis-sold pension claim?
You get one chance to prove to the correct compensation body that you have been wrongly advised. Each mis-sold pension is unique, with its own set of legal considerations – which is why, it’s often worth calling upon the knowledge and experience of experts.
Here at Money and Me Claims, we have a background in financial services. We understand the complex nature of your case and, as such, can prepare a comprehensive mis-sold pension claim on your behalf. The fact that we've recovered millions of pounds for mis-sold clients speaks for itself.
Our financial interests are completely aligned with yours and we have one shared goal: to get you your money and get you the compensation that you deserve if you have been mis-sold.
How much does our service cost?
To be clear, if your claim is unsuccessful or there is no case to answer, we don’t ask for a penny. We’re on your side and we believe you shouldn’t be charged for simply trying to mitigate your financial losses. Just remember though, if you do decide to cancel the claim after the 14-day ‘cooling-off’ period, we will charge a fee which is reasonable for the work we have done on your behalf.
For successful claims, we charge 25% + VAT – the industry average for a very much ‘above average’ service. We are authorised and regulated by the Financial Conduct Authority, so rest assured your best financial interests are always at the heart of what we do. For our full fee structure, please see our terms of engagement.
How can I make a mis-sold pension claim?
Our helpful and knowledgeable team will start by exploring the details of your mis-sold pension and advise on the best way to proceed. If they believe you are eligible, they will complete all the relevant paperwork and prepare a comprehensive mis-sold pension claim on your behalf.
We do the hard work and keep you up-to-date on the claim’s status every step of the way. Just tell us why you feel you were misled and we’ll do everything in our power to win the compensation you deserve.
How much mis-sold pension compensation could I receive?
Compensation for mis-sold pensions varies greatly from case to case. That’s why we never advertise an average level of compensation for a mis-sold pension. The exact amount that you could receive will depend on several factors – including the type of pension you transferred, how you were misled and the level of financial loss that you experienced.
Here at Money and Me, we currently have a 99.4% success rate with the FSCS and 83.3% success rate with the FOS (January 2020) for mis-sold pension compensation. In 2019 alone, we recovered over £14M – with pay-outs as high as £100,000 - £140,000 (after fees) for a number of happy customers.
Start your claim today for free
If you've been mis-sold a pension scheme or been provided with unreliable advice from a financial adviser, then let Money and Me Claims help today. Our dedicated team of experts work on a no win no fee basis, where we only charge a fee if we win your case or you cancel after the cooling off period has expired*. Otherwise, if we don’t win, you don’t pay!
*Please see our Terms Of Engagement for our full fee structure.