Infographic: Are You a Victim of Pension Mis-Selling?
Today I have an eye-opening infographic for you from my friends at Edinburgh IFA about pension mis-selling.
If you watch the TV news, you may be aware that there has been a spate of stories in recent months about pension mis-selling.
In particular, some people have been persuaded to transfer valuable final salary pensions to unsuitable, often high risk, investment schemes, potentially putting their future income and security at risk. Of course, the advisers concerned typically pocket large sums in commission for this.
There is, however, some hope for victims of pension mis-selling, as the government has set up a compensation fund to help them. Here is the infographic with further information.
Thank you to Edinburgh IFA for their detailed and informative infographic.
If you think you (or a friend/relative) may have been mis-sold a pension or badly advised about a pension transfer, then – as the graphic says – you may be eligible for compensation from a £120 million fund set up for this purpose by the government. You can make a claim to the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS).
The FSCS only looks at complaints if an organisation has entered liquidation or administration. If – as is more likely – the organisation you wish to complain about is still trading, you will need to apply to the FOS.
You do need to act quickly, as if you are going to complain there is a time limit of six years from when the product was sold to you, or three years from when you noticed that you had been mis-sold – whichever is the later.
If you wish to complain about being mis-sold a pension, the first step is to contact the adviser (or SIPP provider) in question. They are obliged by law to have a complaints procedure and respond within eight weeks. If they don’t respond, or you are unhappy with their response, you can then file a complaint with the FOS. If they agree that you were badly advised, they can award you compensation of up to £150,000. More detailed information about the complaints procedure is available on the Edinburgh IFA website.
If you don’t feel confident going to the Pensions Ombudsman yourself, you can use a claims adviser. Edinburgh IFA say they are happy to put anyone in this position in touch with an independent financial adviser (IFA) in their area who will provide initial advice free and without obligation. Despite the company name, they offer a nationwide service (not just Edinburgh!).
Or if you don’t want to use them, any IFA specialising in pensions should also be able to help you. The website Unbiased.co.uk can locate suitable independent financial advisers in your area for you.
Either way, if you think you have been a victim of pension mis-selling, don’t bury your head in the sand. Compensation may be available if you act now. In any event, it costs nothing to find out more.
As always, if you have any comments or questions about this post, please do leave them below.