In a recent landmark ruling, a group of victims of a dishonest pension scheme have won their legal claim against the actions of a Sipp Provider. A flood of cases regarding the fraud and mis-selling of SIPPs (Self-Invested Personal Pensions) is increasing with each passing month. The result of which is investors realising that they are about to lose or have already lost a big chunk of their savings, which will impact badly on their after-retirement plans. This is when the victims of pension scheme logged a case against the Sipp Provider and won the legal claim too.
The Financial Service Compensation Scheme (FSCS) has recently made decisions against all the SIPP providers. This has widened the hopes of all the investors, and they are ready to make their claims for the lost investments. The stance of the FSCS is clear that if a company operating SIPP has failed to carry out satisfactory investments on the behalf of the clients, then this would lead to a potential legal claim against the SIPP provider. The FSCS has also doubled the pay-outs for the financial year of these claims from £10 million to £34 million pounds.
This approach has been interesting on the behalf of the FSCS who previously were earlier with the view that advisors who pay out the majority of the claims. However, if FSCS would have been on their earlier stand, then it would have been difficult for the customers whose advisors were already out of business or simply hard to track down. The claim against the SIPP provider has even opened yet another chapter of this case, that in case if the customer was misled into the investment. This claim also lessens the pressure over the advisors in the market, especially from the good guys’ shoulders.
The FSCS also stated that all the providers who have sold, administered and operated SIPPs in a non-standard fashion like oil fields, diamonds, storage pods, and overseas properties have dealt with poor investments, and shall face the claim. Most of the claims against such risky, unsafe investments have already been paid out, but still is a process for the remaining amount. This will also support other claims of similar nature in the future.
This is potentially a very big development for the victims of the pension scheme, especially because of the long on-going saga around the frauds and mis-sold SIPPs. With FSCS now considering SIPP providers to be liable for the losses of their investors, it is clear any customer who shows proper evidence of any company not carrying out the pension process in an acceptable way will have a strong case of compensation with the help of a good mis sold pensions solicitors UK option.