Mis-sold SIPP - if you think yours was, it's worth pursuing!

LindaandNicole

:j
In 2006, an IFA recommended that I move my then personal pension into a SIPP. I stayed with the same pension provider, the IFA selected the funds. Having achieved his commission, the IFA then mostly ignored me for the next six years. I emailed him questions periodically when changing jobs, salary level, working hours etc - and he would eventually reply if I chased him but wasn't what anyone might call 'active'. There were no investment reviews, or changes to funds I was invested in, or offer of same despite my clearly and explicitly 'winding down' towards retirement. In 2011, I came across the Consumer Action report related to 'mis-sold SIPPs' and began to suspect that my SIPP might have been mis-sold - there had been no diversification in my funds from the start, no active management - in fact the only difference to my previous personal pension wrapper was the commission charge going to the IFA - and the ongoing 'trail commission' charges ostensibly for 'ongoing financial advice'. So, I contacted WHICH Money advice line for some specific help re the pertinent points to include in a formal complaint to said IFA, and I sent the first letter off last November (2011). It's been a 'long haul', as the IFA's company tried many different 'wriggly' approaches in different letters to argue that they had not mis-sold the SIPP, however WHICH assisted me with my replies in which I said 'err No, you're avoiding the point - you did' - and eventually, this March, I have received a refund of charges BACS of £5444.16. :T Now, I know that in a perfect world this would have been put direct into my pension, but I am no longer a tax payer, and the company (let's call them 'JJ' or now 'CS') left it so long that by the time they were ready to make an offer big enough, my SIPP contributions for the year were maxed out, so they had to just give me the money. I thought I'd post on here to encourage people who think they may have been mis-sold a SIPP to continue to press complaints with IFAs - and don't accept their first response!! Remember it's only the Financial Ombudsman's word that is final, and it's really worth pursuing your case :rotfl:

dunstonh

I thought I'd post on here to encourage people who think they may have been mis-sold a SIPP to continue to press complaints with IFAs

Anyone who has reasons to complain should complain.


its a bit weird as in 2006 there was SIPP mania and it was oversold. However, with RDR coming in next year, SIPPs and platform based pensions are now becoming increasing popular again but this time with justification. The cheapest pensions can be obtained via platform pension/SIPPs.

So, you do have to be careful that just because you have a SIPP does not mean you were mis-sold. There also needs to be some context. The FOS for the last full year got only 417 SIPP complaints. That is less than pet & livestock insurance. It was a concern but it isnt one that is being reflected in complaint volume. Typically, you dont invest in a SIPP to be cheapest (although that can be the case currently). You invest in a SIPP to access options that you cannot get in other pensions. In your case above, it seems it is not really about it being a SIPP but it being about the adviser not delivering what they said they were going to do. That could have occurred on a personal pension or something else.

We dont want to see people putting in complaints on the basis "I have a SIPP, I have been mis-sold". That would be wrong.

gadgetmind

LindaandNicole wrote: »

Having achieved his commission, the IFA then mostly ignored me for the next six years. I emailed him questions periodically when changing jobs, salary level, working hours etc - and he would eventually reply if I chased him but wasn't what anyone might call 'active'.

That rings several bells!