If you received advice from a financial adviser to transfer your pension fund(s) into a SIPP holding high risk, illiquid alternative investments, that advice may well have been unsuitable. As a company, we have acted for hundreds of clients who have found themselves in this situation, often with their investments reducing in value, or even becoming worthless.
Even if you did not receive financial advice, it may well be worth submitting a complaint/claim, against your SIPP trustee/administrator, as they may have failed in their regulatory obligations to conduct sufficient due diligence on the alternative investments, and/or those that introduced you to them, such as non-regulated agents or introducers.
The case study below illustrates how one of our clients received a successful claim for compensation in relation to unsuitable financial advice, however with losses above the compensation limit (£50,000), this lady may well look to seek a secondary claim for her losses from her SIPP trustee/administrator:
Case Study - Ms C.D.
Transferred Final Salary Pension into a SIPP on 31/07/2012
The Cash Equivalent Transfer Value (CETV): £97,744.72
Final Salary Scheme: HBOS Plc (Halifax/Bank of Scotland)
Gross ‘put back’ figure: £299,438.27. (3.0 x CETV)
Investment Portfolio value:
Parkfirst car parking space(s): £40,000 (Full value, 100% of amount invested)
Freedom Bay Property: £0
Cash/bank account: £21,042.79
Net loss prior to compensation paid: £238,395.48
Maximum compensation paid to our Client on 23/01/2018: £50,000
Potential future claim against SIPP trustee/administrator: £188,395.48
We have filed complaints with a number of SIPP companies and are monitoring the situation with other companies closely in order to present solid, well researched arguments for our clients’ compensation claims.