SIPP PROBLEMS

Cherub61

I am new on here and don't know where to turn at the moment. Apologies for this being a long query.I  have tried all sorts of people such as the Pensions Advisory Service and nobody seems able to help.

I had a small pension pot of 29k, back in 2012 I was advised this would be better transferred to a SIPP as it was projected to pay out only £450 per annum. This had nothing to do with being cold called, it was advice I was given by an FA I'd dealt with and trusted for a number of years; he gave my husband the same advice, in his case to consolidate 2 pensions he had. We were referred to a colleague of his who I now assume was an "introducer".

Unfortunately a few years later the SIPP provider we transferred to declared themselves insolvent, as a major compensation case re due diligence was being pursued against them. Their SIPP arm was bought by another company and everything transferred. We had known for some time the investments were either worth nothing or illiquid (the illiquid parts are in the hands of administrators at the moment and it's long drawn out). By that point we had seen a Chartered Financial Advisor for advice, he went through all our paperwork and said we had straightforward cases to take to FSCS for compensation.

OH was successfully awarded the full amount with no further questions asked. In my own case I had to deal with a claims handler harassing me over the phone (I felt I was being questioned by the police) and FSCS told me I was only entitled to the transfer fee of £1800. I appealed the decision and made a complaint about the behaviour of the claims handler but neither was upheld and I was told my case was now closed and that was it. Something did not seem to be right. The CFA I saw said he could not believe this had happened as it was so unfair.

I'm now living overseas with my husband's job as a dependent spouse and am being invoiced fairly large management fees and have had to pay business rates as 2 of the investments are store pods. The SIPP account has no money in it (it was used up on fees) and I don't have personal income as I have no job and no prospect of one. I have tried negotiating but get the same answers every time (and it took me 9 months to get a reply). Is there any way forward from this as I retire in 5 years and am very concerned for my financial future and worried sick about fees which they tell me will just keep accruing.

Marcon

Cherub61 said:

I am new on here and don't know where to turn at the moment. Apologies for this being a long query.I  have tried all sorts of people such as the Pensions Advisory Service and nobody seems able to help.

What exactly did TPAS say when you approached them for help?

Cherub61 said:

I had a small pension pot of 29k, back in 2012 I was advised this would be better transferred to a SIPP as it was projected to pay out only £450 per annum. This had nothing to do with being cold called, it was advice I was given by an FA I'd dealt with and trusted for a number of years; he gave my husband the same advice, in his case to consolidate 2 pensions he had. We were referred to a colleague of his who I now assume was an "introducer".

Were one or both of these regulated individuals?

Cherub61 said:

Unfortunately a few years later the SIPP provider we transferred to declared themselves insolvent, as a major compensation case re due diligence was being pursued against them. Their SIPP arm was bought by another company and everything transferred. We had known for some time the investments were either worth nothing or illiquid (the illiquid parts are in the hands of administrators at the moment and it's long drawn out). By that point we had seen a Chartered Financial Advisor for advice, he went through all our paperwork and said we had straightforward cases to take to FSCS for compensation.

OH was successfully awarded the full amount with no further questions asked. In my own case I had to deal with a claims handler harassing me over the phone (I felt I was being questioned by the police) and FSCS told me I was only entitled to the transfer fee of £1800. I appealed the decision and made a complaint about the behaviour of the claims handler but neither was upheld and I was told my case was now closed and that was it. Something did not seem to be right. The CFA I saw said he could not believe this had happened as it was so unfair.

What reasons did the FSCS give for their decision?

What further help did the CFA offer/what did he suggest?

Cherub61 said:

I'm now living overseas with my husband's job as a dependent spouse and am being invoiced fairly large management fees and have had to pay business rates as 2 of the investments are store pods. The SIPP account has no money in it (it was used up on fees) and I don't have personal income as I have no job and no prospect of one. I have tried negotiating but get the same answers every time (and it took me 9 months to get a reply). Is there any way forward from this as I retire in 5 years and am very concerned for my financial future and worried sick about fees which they tell me will just keep accruing.

Who is 'they' - the administrators?

squirrelpie

What is a Chartered Financial Advisor?

Cherub61

Marcon, in reply to your questions:-

TPAS told me to make a formal complaint about not being able to close the SIPP, this was when it was still with the original SIPP provider. I went ahead with this, the SIPP provider started the complaints procedure but before it was completed they closed the SIPP arm and it was bought up as a package by the new company. The other alternative TPAS gave was to try setting up a share dealing account and have it buy the investments out of the SIPP but they went on to say this would prove very difficult.

Of the FAs, one now holds no directorships and the other is still listed as active with Companies House, but he is barred from handling pensions (I think I got this info from the FCA website). Both were involved with a company called Douglas Baillie, The Pension Specialist. I referred details for both of them to Action Fraud and the SFO only to be told there is not enough evidence for an investigation. I believe the person I had dealt with for a number of years had been regulated but his colleague wasn't.

FSCS said I did not provide any new evidence as part of my appeal, also that the liability for the investments lies with a company that I know is no longer in business. The FA who I believe to have been an introducer was working for that company although I did not know this at the time.

I had also signed 3 documents that I was told were formalities for the transfer to the SIPP provider (i.e. they were documents they needed) - it would appear these papers enabled my funds to pass through 3 other parties first, in the case of 1 of the companies a director went to prison for taking funds from another client's pension.

The CFA we consulted advised after my failed FSCS claim that I should go to the new SIPP provider to tell them I no longer wanted dealings with them and requesting I be released, but they have told me this is not legally possible.

To clarify "they" is the pensions company that took the SIPP over.

Marcon

squirrelpie said:

What is a Chartered Financial Advisor?

A CFA (aka a Chartered Financial Planner) holds the Advanced Diploma in Financial Planning/PFS Fellowship. 

Marcon

Things have obviously moved on since you first contacted TPAS. It might be worth going back to them with an update on what's happened and seeing if they can provide any useful input.

Cherub61

Thanks for your tip Marcon.

I am planning to go back through all of the paperwork, emails etc I have re this problem, although having read some of the other threads about SIPPs on this forum I'm not confident of a better outcome and have read horror stories in the financial press about people being threatened with legal action by SIPP providers regarding fees (mines seems to have transferred from one bad company that didn't do due diligence to another that seems hell bent on fleecing people with worthless investments).

I hope to take legal advice as soon as I can get back to the UK, but the country where I am based is still on the UK's quarantine list so that could be ages yet.

Marcon

Cherub61 said:

Thanks for your tip Marcon.

I am planning to go back through all of the paperwork, emails etc I have re this problem, although having read some of the other threads about SIPPs on this forum I'm not confident of a better outcome and have read horror stories in the financial press about people being threatened with legal action by SIPP providers regarding fees (mines seems to have transferred from one bad company that didn't do due diligence to another that seems hell bent on fleecing people with worthless investments).

I hope to take legal advice as soon as I can get back to the UK, but the country where I am based is still on the UK's quarantine list so that could be ages yet.

Don't forget you can deal with TPAS remotely, if that helps - ditto lawyers, many of whom are still working from home.