Mis-sold Self Invested Personal Pension (SIPPS)
You could be entitled to thousands of pounds of compensation if your SIPPs investments have been mis-sold.
A Self Invested Personal Pension (SIPP), is a personal pension scheme approved by the government. SIPPs were introduced in 1989, and since then more than a million UK citizens have used a SIPP to further their pension pot.
However, SIPPs are considered riskier than other types of savings as they rely on the success of where the money is invested.
Whole Of life Policy Mis-selling
Possibly 95% of Whole of Life policies were mis-sold. The consumer chooses a sum assured and pays regular monthly premiums to an insurance company. Part of the premium is used to build up an investment fund. The amount that the consumer is required to pay and the sum assured is set on the basis of certain assumptions about what will happen in the future. These assumptions include the cost of providing life cover and how well the investment fund will perform in the future.
What is a unregulated collective investment schemes (UCIS)?
High risk investments have been knowingly mis-sold to ordinary people who would not understand the true risk, nor that the investment is not protected by regulations. They are known as unregulated collective investment schemes. Some schemes are “land bank” schemes, and many are simply scams, whereas others may be simply opportunities that have been mis-described as having a lower risk.
An annuity is an insurance contract that insures against you living too long. In return for a lump sum (the money you have saved in your pension pot), an annuity provider (insurance company) will give you an annual income for the rest of your life.
Savings Plan Mis-selling
Regular savings plans were sold by companies such as Allied Dunbar, Cornhill, General Portfolio, MI Group, and went under a variety of names – MIP, Capital Builder, Flexible Savings Plan, etc. They were, however, bad investments with high front end charges, and most were a mis-sale. You may still be able to claim compensation.