What to do if you've been mis-sold a SIPP pension
Being mis-sold a pension essentially means that somebody sold you a pension that you should not have been sold, usually because it wasn't an ideal fit for your investment needs. If you were recently sold a self-invested personal pension (SIPP), and you've now discovered that you should not have been sold this kind of pension, you might be wondering what you can do to take actions against the party responsible for mis-selling you the pension and how you can obtain compensation for the funds and effort you've already invested. Here are a few tips that will help you with that:
Contact a Lawyer That Specialises in SIPP Pension Compensation Claims
Contacting a standard lawyer about a mis-sold SIPP pension isn't a good idea because this is a very specific field of legal defence that requires the work of someone who has applicable experience. Conversely, dealing with a SIPP pension claim specialist is the most reliable way to maximise your chances of having the courts rule in your favour. Fortunately, there are entire firms of solicitors who specialise in this area, and with the mis-selling of SIPP pensions becoming such a common problem in recent years, there's a bustling industry or professionals springing up to accommodate the same need that you're facing.
Don't Use the Pension in Any Way
The more you use your SIPP pension, the less likely it is that you'll be awarded compensation for being mis-sold the pension to begin with. As the name implies, self-invested pensions mean that you're in charge of managing your own pension investment portfolio. If it appears that you've been successfully managing that portfolio for an extended period, then the courts may determine that you were in fact eligible and qualified to be sold an SIPP. If, however, you leave the account untouched and file a compensation claim as soon as possible, you'll usually have no trouble winning the case.
Don't Accept Settlements or Other Proposed Resolutions from the Mis-Seller
The party who sold mis-sold you the SIPP may try to contact you once they find out you’re filing a compensation claim. They may issue an apology and offer some form of their own compensation in an effort to motivate you to drop the claim. Do not engage in any negotiations with them and let your lawyer continue the course to obtain compensation in court. Accepting a settlement or resolution proposal will only serve to reduce the amount of compensation you'll gain, and in some cases, they might not really provide any compensation at all – they're just telling you that they will so you'll comply with their request to stop the claim filing.
Know That You Will Be Compensated
Ultimately, there's really no need to fret about whether you'll be able to obtain compensation for the money you've already put into the SIPP that you were mis-sold, as you should have no problem getting what is owed to you as long as you're heeding the three tips above. Starting with the right lawyer is absolutely imperative because that is the professional who will be representing your compensation claim.
