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Physical Asset Investment Schemes - Mis-sold SIPP Investments
Have you been advised to invest your pension into income-generating physical assets like storage pods, car parking, and hotel rooms? If your financial adviser encouraged you to invest some or all of your SIPP into these assets, you may have been mis-sold. Find out how our expert panel can help.
The growing popularity of self-invested personal pensions (SIPPs) has meant that investors have been offered the chance to invest in non-standard, high-risk assets like income-generating schemes. These schemes offer investors the chance to own some or all of a storage pod, car park space, or hotel room, and earn yield from the use of those assets.
However, there is an increase in the mis-selling of this sort of investment. Many unsuspecting investors have been persuaded that these schemes would be a profitable way to grow their savings for retirement. However, this is usually not the case, and many UK investors have lost thousands of pounds and have been left with no retirement fund.
These physical asset investments are notoriously high-risk, and not suitable for the average investor. Due to their physical nature, they are also relatively illiquid, meaning it is hard to easily retrieve your money once the investment has been made. If you wish to cut your losses and leave the scheme, you have to find a buyer for the physical asset. For anyone over the age of 50 who is thinking about retirement, this is clearly unsuitable.
If you believe you have been mis-sold a physical asset investment via your SIPP, our expert panel of mis-sold SIPP solicitors may be able to help you recover some or all of your pension back.
Our panel offer a free, no-obligation review of your case to see whether you have a valid claim. To begin, simply enter your details on our easy-to-use form below.
Why are some physical asset investments high-risk?
Many of these physical asset investments are not regulated by the FCA, and are non-standard investments that are only intended for experienced investors. Very often, the storage pods or parking spaces are marketed by advisors as having a much higher return-on-investment than ever materialises. Financial advisors also play on the “too good to miss out on” aspect, encouraging their clients to invest without any proper due diligence.
These investment schemes are also incredibly speculative. The use of car parks, for example, and therefore their yield, entirely depends on other factors and businesses around the car park. It also relies on the car park being maintained throughout the investment to ensure that the return-on-investment is as high as possible.
Many investors are being encouraged to invest in these investments, despite the fact they have a low-risk profile and are not suitable.
What are the examples of physical asset investments?
Our panel of mis-sold SIPP solicitors regularly see a number of mis-sold physical assets crop up. There are a number of key assets that appear time and time again. These asset investments are:
- Storage Pods
- Car Parking Scheme
- Storage Schemes
- Airport Parking Spaces
- Hotel Rooms
Some of these investments have recently made headline news for how much money they had lost their investors. Investors of these schemes later claimed compensation via a mis-sold SIPP claim. These investments were:
- Store First - Storage company that guaranteed income. Many storage pods were left empty with very little profit being generated. Clients also had to pay management fees to Store First. Many of their investors were left out of pocket and stuck with worthless assets they cannot sell.
- Park First - Investment scheme that looked to make a profit from car parking spaces at major UK international airports. Investors were told they would receive high returns from parking fees by airport customers. Park First collapsed in 2019 after they failed to pay all of the investors who opted for the buyback clause offered to them.
- The Resort Group - TRG offered investors shares of hotels rooms in Cape Verde. This unregulated investment promised high returns from paying customers which never materialised. High-pressure sales tactics and cold calling was used to get investors to put money in.
Do any of the above assets sound like the scheme you have invested your pension in? If you are unsure as to whether you have been mis-sold, our expert panel of solicitors can help guide you.
How could I have been mis-sold?
Our panel members will help determine whether or not you have been mis-sold and if you have a legitimate case for compensation. Some of the factors they will look for include:
- 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)
Is there a time limit for mis-sold SIPP claims?
Yes, there is a time limit for bringing forward a mis-sold SIPP claim for physical assets. This time limit is:
- 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 mis-sold SIPP solicitors advise you to get in touch as soon as possible, even if you are not aware of a potential mis-selling yet.
How much money can you receive for a mis-sold physical asset investment claim?
Every mis-sold SIPP investment claim is different, and the amount you can claim for your mis-sold physical asset investment depends on a few factors. The main factor, of course, is how much money you invested from your SIPP into the investment.
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?
Have you potentially been mis-sold a physical asset investment? Have you invested in storage pods, hotel rooms, or car parking spaces via your SIPP?
If you have lost money by transferring your pension into a SIPP which was then used to invest in high-risk physical assets, 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 today to find out if you are eligible to claim.
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