£2.75m returned to dissatisfied SIPP investors in past 12 months


Unfortunately, an increase in negligent financial advice has seen the pension mis-selling scandal escalate further.

North West law firm, Smooth Commercial Law, have seen an increasingly worrying trend continue to rise over the past year. New figures show that in the past 12 months alone, the pension mis-selling law firm has helped return £2,778,883 to its clients after they had been advised to invest into a self-invested personal pension (SIPP).

Many of these cases will relate to high-risk investments made through these SIPPs, where consumers are told by their financial adviser to cash in their lifetime pension pot when it is not in their best interest to do so.

These investments are normally suited to highly experienced investors who do not mind potentially losing large sums of money, and are usually centred around overseas assets like Ethical Forestry, Global Plantations, and the German Property Group.

The Financial Services Compensation Scheme has forecast that its levy, which pays for customer compensation and its running costs, will be increased to a staggering £1.04bn for 2021/22 due to the ongoing rise in complex pension advice claims. 

Last year alone there were 13,504 applications made to the FSCS for mis-sold pensions.

Scott Birchall, Director at Smooth Commercial Law, said of the latest figures:

"Unfortunately, every year the amount of people asking for help after being left out of pocket because of a pension investment increases. Some of these investment schemes can negatively affect even some of the savviest businessmen and women out there. 

We are finding time and time again that many SIPP providers simply do not carry out proper due diligence, putting their clients and their savings at risk."

Gordon Coombe, a recent client of Smooth Commercial Law’s spoke of his pension mis-selling case:

"I had been mis-sold a pension, into which I invested a lot of money into. I contacted Smooth who got all of my money back. I cannot thank David Smith and the team enough."

A recent high-profile court case could see the floodgates open against SIPP providers. The Court of Appeal recently sided with claimant Russell Adams who had been mis-sold a SIPP investment, via an unregulated introducer.

The court found against the provider, Carey Pensions, after they facilitated investments into Store First unit pods which were unsuitable for Mr Adams and are now deemed worthless. Mr Adams will now receive the money he had paid into the SIPP, along with some compensation to reflect the losses he has suffered as a consequence.

If you believe you are the victim of a mis-sold SIPP or if your SIPP is not performing as you were told it should be, Smooth Commercial Law are able to help bring forward a claim to potential recover your money. Visit their website here for more information or call on 0800 046 9976.