Mis-sold SIPP

Batti

Hi.

I transferred approx £38K of a private pension into a SIPP nearly 3 yrs ago. It was a high risk, off-shore SIPP that's due to 'pay out' in August this year.

The FAs who set this up have been shut down and it looks like the second company now administering are also likely to go the same way.

I have been approached by a company who want to claim on my behalf, from the FSCS, for the set up and quarterly fees I've been charged to date, plus the possibility of the whole of the SIPP total at the end of the term. It has been hinted at that, although I haven't lost the SIPP yet, it looks likely.

My question is, does the below make sense to someone on here?!

Redress payment £48,000.00
Fee options Option 1 Option 2 Option 3
Conditional fee % 15% 10% 5%
Initial Fee Includes Vat. £150.00 £750.00 £1,500.00
Conditional fee X Vat £7,200.00 £4,800.00 £2,400.00
Vat on Conditional fee £1,440.00 £960.00 £480.00
Total cost £8,790.00 £6,510.00 £4,380.00
Total cost as a % 18.31% 13.56%. 9.13%

Per Month by DD for 12 mth No £75.00 £150.00
3 payments over 6 mths No No £550.00

Net Money received £39,210.00. £41,490.00 £43,620.00
Extra DD cost £0.00 £150.00 £300.00
Net Money received
if paid by DD £39,210.00. £41,340.00 £43,320.00
Extra compared to op 1. £2,130.00 £4,110.00

These are fees/returns I must pay to the company to do the work for me and I'm being given the 3 options above, depending on what I can afford. I have to pay whichever option I choose up front for the work.

Having been bitten once, am I about to get bitten again?!

Many thanks in advice (in Noddy format!) for any help people can give.

dunstonh

Why not do the complaint yourself?

Batti

Not sure that I'm capable - don't have the know how. I know it's basically form filling but I'm worried I might make a costly mistake.

McKneff

Beware of the words


'I have been approached by'


What makes you think that they can do any better than you yourself....

LHW99

Talk to the Pensions Advisory Service?

sandsy

Batti wrote: »

I have been approached by a company

This sets the alarm bells ringing. Who is this company? They cold called you? Who is your SIPP actually with?

dunstonh

Batti wrote: »

Not sure that I'm capable - don't have the know how. I know it's basically form filling but I'm worried I might make a costly mistake.

Do you actually have any complaint or is this a cold calling company trying to generate a complaint (where no complaint may exist)?

lmappy

Hi Batti, There are only one or two SIPP providers that operate off shore? Mostly deal with non- UK residents.


Were you based off-shore at the time of the pension transfer into the SIPP? Where was the IFA who approached you regarding the transfer based i.e. were they based in the UK (i.e. FCA regulated)?

macca1974

So, just to be clear, you were recommended a "risky offshore sipp" that is due to "pay out" in August this year. Before paying a complaints company any money that you might not see again, it is probably worth giving a few more details about what you have and where it was invested.

So, who is the SIPP with and what was the underlying investment.

The fact that the adviser in question has gone under (assuming that it was a UK regulated firm) doesn't necessarily mean that you have lost any money. It also means that any complaints that you would make would more than likely fall on the Financial Services Compensation Scheme (FSCS) rather than the Financial Ombudsman Service (FOS).

Before you complain about anything, you need to make sure that you have actually lost money and that the advice was inappropriate.

If you were recommended to invest in a non-regulated investment by a regulated IFA, then there is a good chance that it was a mis-sale if you are a normal retail investor, so I'm not sure what a complaints handling firm could do that you can't do yourself.

Batti66_2

Hi all. Thanks for the responses. I have had to re-register with MSE because the forum decided it wouldn't recognise my email address when I tried to log in again to respond to you all, hence the user name change.

I was not based off-shore when I took out the SIPP. It was through a UK registered company, with an FSA no., called 1Stop Financial Services, who are now kaput. Hence the claim for mis-sale.

The SIPP is through Guardian Pension Comsultants and is with Pure Diamonds.

The company that contacted me are Holkham Financial, one of the principals of which is Andrew Zgorski, the person that contacted me. They got my details from 1Stop's files, who had approached them when they knew they were in trouble, therefore my details aren't out there for anyone to get hold of. Allegedly...

I'm aware that at the moment the 'potential' claim is only for the fees paid to the mis-selling company, i.e. the Pure Diamond investment hasn't actually failed yet...

I'm aware of my relative stupidity in taking out this risky SIPP but all help now is greatly appreciated!

MPD

From their website

"Pure Diamond Investments are specialists in high yeild, low risk diamond investments"

Spelling mistakes are not a good sign!