A new SIPP development has seen the Financial Ombudsman Service order TenetConnect to compensate a client due to unsuitable advice provided by the client’s appointed representative. We take a look at this story and other SIPP developments below.
The FCA, the trend, and the SFO
In 2018, the FCA found it unfavourable to ban unregulated SIPPs and instead opted for due diligence on the part of SIPP providers as well as investors.
Currently, the Serious Fraud Office is screening Global Forestry Investments, Capita Oak, Harlequin Group and Ethical Forestry for fraud allegations involving investments. People have been scammed over and over again since 2014 as some people can’t differentiate between legitimate providers and fake ones.
A recent news story highlighted this, as a client’s representative, who he was introduced to via a loan company who lent him money to invest in unlisted securities, gave him the advice to swap his existing personal pension to a SIPP with SVS Securitues, which had just entered administration. When the client complained of the poor deal, as he believed the advisor had invested too many shares without proper research, the company denied that the advisor had ever given such advice.
After a legal battle, the ombudsman ruled with the client despite dispute from the Tenet and the company was found liable for offering unsuitable advice.
Independent financial advisors’ perspective
Many legitimate financial advisors don’t concur with the utilisation of unregulated assets in SIPPs. They also believe that it is their responsibility to let a client know whether an asset is suitable for such investments. In addition, they think that SIPP providers ought to protect their clients from risking valuable assets knowing that it would leave them in a bad position if lost.
Banning some SIPP investments would benefit the whole nation because no matter how cautious investors are, someone is still going to be scammed. It would be difficult for pension mis selling to take place if the option is not available.
Do you require justice for your pension?
The recent pattern of unregulated self-invested personal pensions that has seen investors lose their money has left many worried about the practice. If any of the above information has raised questions about your own pension, do not hesitate to contact Pension Justice today.