Pension Claims FAQs
What is a SIPP?
A Self Invested Personal Pension ("SIPP") is the name of a UK government approved personal pension scheme which allows individuals to make their own choice of investment. These schemes allow you to invest in a wide variety of investments and can be one of the most tax-efficient ways of saving for retirement
Why might a SIPP have been mis-sold?
Although SIPPs are government approved, they are not regulated. This means that the underlying investment is often more “risky” than traditional pension schemes. For a large number of individuals, the risks were not properly explained or investments were recommended which were not suitable for inexperienced investors and as a result, the value of these pensions in some cases has reduced substantially.
What is the average compensation paid for a mis-sold SIPP?
This will depend on how much was invested, how long ago the investment was made and perhaps most importantly, what losses have been occasioned by the advice given to invest in a SIPP. In addition, if the advisor is no longer in business, the maximum financial award that can be given by the Financial Services Compensation Scheme is £50,000.
How long will it take to receive my compensation?
This will vary from case to case. In some instances, once a claim is submitted, compensation is paid within 2 or 3 months where the advisor is quick to respond; in others it could take significantly longer if the complaint is referred to the Financial Ombudsman Service or Financial Services Compensation Scheme. In our experience the majority of claims are settled within 12 weeks however in all instances, the time it takes will depend on your specific circumstances and most importantly upon the advisor.
How much is DRSP’s fee?
DRSP’s fee for any successful claims is 30% plus VAT. This amount is payable on settlement of the claim. This means that for every £100 of financial benefit received a fee of £30 plus £6 VAT is payable.
When an advisor makes an offer, it will almost always include statutory interest which is set at 8% annually. This is basically compensation and is included due to the customer being deprived of the money they were paying.
The statutory interest; due to its compensatory nature is classed as taxable income. Advisors will normally deduct tax (at the basic rate of 20%) from this and they will send it to HMRC automatically. DRSP’s fees are due on the gross offer prior to any deduction of tax.
You are also able to submit a complaint to the financial advisor directly or through the Financial Ombudsman Service if you prefer.
Can I cancel my claim with DRSP?
You can cancel your claim with DRSP at any point although a fee may be payable under Section 8 of our Terms of Business if this is done outside of your 14 day cooling off period which runs from the point your signed Terms of Business are received. Should you wish to cancel, your cancellation does not need to be in writing but a cancellation form is located here should you wish to do so.
What if the advisor is no longer trading?
If the advisor is no longer trading, it is important for us to ascertain exactly who gave you the advice. Although a SIPP is not a regulated product, specific advice regarding transferring to a SIPP and making a recommendation is regulated. In these instances, if the company was regulated by the Financial Conduct Authority ("FCA") at the time the advice was given, a claim may be progressed to the Financial Services Compensation Scheme who can award compensation up to £50,000.
If I do not have all of the documentation from the sale, can I still make a claim?
Absolutely. DRSP can issue Subject Access Requests on your behalf to obtain all marketing material, documentation and evidence of any risk assessments taken by the advisor. However, the more information you can provide us with regarding any correspondence, previous addresses and information about when and how the SIPP was taken out will enable us to deal with your claim more quickly.
Are DRSP authorised to manage my claim for a mis-sold SIPPs?
Yes. DRSP Limited is regulated by the Claims Management Regulator in respect of regulated claims management activities, CRM29438.
To start your claim, either click the Start Claim button or contact us on 0800 849 5078.