Are you concerned that you have a mis sold pension? There are many people who might be in this situation. But there is hope, there are ways that you can claim compensation to get back the money so you can invest it with a more reputable financial service or save in it an account.
To make a claim for compensation against the IFA that oversaw the investment, or is the provider of the SIPP, there are several steps you must follow.
How long do you have to make a claim?
Of course, time is of the essence. Generally speaking, you have about six years from the time that you took out the SIPP or from the date that the pension was transferred. If this time has passed, then there still might be a chance to claim compensation as you’re allowed to claim to the Financial Ombudsman Service (FOS) for up to three years after you’ve realised that you’ve got a reason to complain or could have known of an issue.
While this might seem like a long time, this can quickly disappear. Many people lose out on compensation, which can include interest on the value of compensation that you missed out on due to the mis sold pension.
A lengthy process
You should also remember that it can take a while for your claim to be resolved. The first instance you should have is for you to raise a complaint with the business that mis sold you a pension or SIPP. If they don’t resolve the complaint within thirteen weeks, you can then take up the case with the FOS.
The FOS is a free service to use and can look into the matter on your behalf. Then they might instruct the business to pay you compensation, including any interest on the money that could have been invested elsewhere.
What if the adviser is now in default?
For one reason or another, some of those who could have mis sold you a pension are no longer trading. That doesn’t mean that you can’t still claim compensation. There is the Financial Services Compensation Scheme (FSCS).
However, there are still time limits in place on how long you have to make a compensation claim if you realise that you have a mis sold pension.
One way to ensure that you’re within the time period is to not process the claim yourself. Instead, instruct a specialist compensation team to look into the matter for you. They can instantly tell you if there is cause for a complaint and process the claim to ensure it is done before time has run out.
Many specialist firms will also work on a no-win, no fee basis. So, there is no reason not to contact a company if you think that you’ve got a mis sold pension.