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High-Risk Investment Schemes - Mis-sold SIPP Investments
If you have been advised to place some or all of your pension into high-risk investments via a SIPP, you may have been mis-sold that investment. Find out today if our panel of expert mis-sold SIPP solicitors can help get your pension back.
As self-invested personal pensions (SIPPs) become more popular, so too does investing in high-risk, non-standard investments. Many of these investments are only ever intended for experienced investors who are not afraid to lose all of their money. However, financial advisors and SIPP providers are encouraging their clients to invest in many of these schemes and not carrying out the due diligence required.
Typically, the financial advisors do this because they either charge more in fees, or they offer large “introducer” payments. This means they have their own intentions at heart, rather than their clients’.
If you have been advised to invest your pension pot into high-risk, unsuitable, potentially unregulated investments, you could have been mis-sold. Our expert panel of mis-sold SIPP solicitors can inform you whether you have a valid claim for compensation.
They offer a free, no-obligation review of your case. To get started, fill out our easy-to-use eligibility form below.
Why are some investments high-risk?
Some investments that are marketed by financial advisors and SIPP providers are packaged as “alternative investments”. This basically means they are non-standard, and while they can provide more yield, they also have a higher chance of substantial loss of capital. A high-risk investment, therefore, is one where the chances of underperformance, or of some or all of the investment being lost, are higher than the average.
The three main assets that are considered “safe” are stocks, bonds and cash, however, there are a number of high-risk bonds and smaller cap stocks that may offer investors the potential for higher return, but are also riskier.
Many of these high-risk investments are also not regulated by the FCA, including shares in unlisted private companies. These sorts of investments of regularly are marketed as “too good to miss out on”, with great returns on investment being offered. Investors often find that they are indeed too good to be true, and end up losing massive chunks of their pension pot.
What are the examples of high-risk investments?
Our panel members come across a number of high-risk investments that are used within SIPP portfolios. Unfortunately, many of their clients end up losing the majority if not all of their pension pot.
Some of these high-risk investments include:
- Currency Trading / Forex
- Futures, Options & Derivatives
- Contracts for Difference (CFDs)
- Spread betting
- Crowdfunding / Peer to Peer Lending
- Life Settlement Funds
- Premium Bonds
- Loans to connected & unconnected parties
- Unlisted Warrants
- Shares in unlisted private companies
Any of the above can be mis-sold if the investment scheme was not right for you. Mis-sold CFDs, unregulated investments, unregulated collective investment schemes (UCIS), and other investment bonds are all, unfortunately, becoming more common in relation to mis-selling.
In addition to this, there are other non-standard investment types that are highly risky, including property (overseas and domestic), agricultural schemes, environmental schemes, appreciating assets, and income-generating physical assets.
Even if you haven't been alerted that your pension administrator or IFA is in default/administration, you may have been mis-sold the high-risk investment and it simply hasn't yet come to light yet.
How could I have been mis-sold?
Our panel of mis-sold High-Risk Investment solicitors will be able to determine whether you have been mis-sold after investigating a number of different factors. When you get in touch, they will look to discover if any of the below has happened to you:
- You have lost some or most of your pension value
- You can't "get out" of the investment (your investment is illiquid)
- The investment is not increasing in value
- The IFA who advised you to invest is not responding to communication
- The investment is decreasing in value
- The investment has not materialised -for example, construction was never finished
- The investment is higher risk than you thought
- The investment scheme operator is not responding to communication
- You were "cold-called", had someone knock on your door, or you responded to an online ad
- You were offered a cash incentive to invest
- The investment scheme operator in administration
- The IFA firm that advised you is in administration
- You were encouraged to invest in a SIPP despite a pension value of less than £100,000
- The investment guaranteed or promised higher returns than normal (over 7.5% PA)
If our panel determine that any of the above issues have affected you and your investment, then it is likely that you may have been mis-sold your investment.
Is there a time limit for mis-sold SIPP claims?
Yes, as with any investment claim, there is a time limit for high-risk investment SIPP claims. These time limits are as follows:
- Six years from when you were mis-sold the SIPP investment, or;
- Three years from the time you became aware of the mis-sold SIPP
Our panel would advise getting in touch as soon as you are either aware of a mis-selling, or have a suspicion of any wrongdoing, to avoid being time-barred.
How much money can you receive for a mis-sold high-risk investment claim?
How much you can claim for a mis-sold high risk investment claim depends on your individual case. Our panel will be able to determine relatively quickly how much you could look to recover if your claim is successful. They will go through this with you during your claim.
If the financial firm you are claiming against has failed after a number of claims against it, the FSCS can award up to £85,000 per person, per claim. Our panel members will talk you through exactly how much they will look to recover.
How can ClaimExperts.co.uk Help?
If you believe you have been mis-sold a high-risk investment after investing via your SIPP, you may be entitled to thousands in compensation. If you have been left out of pocket due to negligent financial advice, our expert panel can assist.
If you have lost money by transferring your pension into a SIPP which was then used to invest in high-risk investments, the panel at ClaimeExperts.co.uk can help get your money back. Even if you have not lost significant amounts, you still could have been mis-sold your SIPP. Get in touch with our expert panel of mis-sold Pension Solicitors today to find out if you are eligible to claim.
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