Pension mis-selling is a growing issue, with increasing numbers of people making claims for their financial losses. There are many ways in which a pension can be mis-sold– with one of the most common being lack of risk assessment.
This was certainly the case with Copia Wealth Management, who are now in liquidation, due to mis-selling claims brought against them. Here’s a closer look at what happened, and what to do if you believe you’ve been mis-sold to.
What did Copia Wealth Management do?
After an investigation, The Financial Ombudsman Service found that Copia Wealth Management had given a client unsuitable advice regarding the transfer of their pension.
The client in question was provided with a suitability report, then advised to transfer his current pension into a SIPP product. The SIPP was placed into high-risk investments, and the client lost money as a result.
After investigating the matter, Ombudsman Keith Taylor found no evidence of Copia assessing the client’s attitude to risk, nor anything to suggest that the SIPP would have benefitted him financially. The client’s earnings were below the national average, and he didn’t have much money saved.
Additionally, the FOS found that the SIPP was more costly than the client’s original pension scheme. The Ombudsman commented: “This means that Mr L would have needed to take a high degree of risk with his investments and probably invest largely in equities. And, as I’ve said, I don’t think he ought to have been classed as a high-risk investor.”
What happened next?
After the review was complete, the FOS judged that Copia Wealth Management should compensate the client for his losses, and ensure that he was returned to the same financial position he was in before the transfer.
Regrettably, this isn’t the only claim to be made against the company. A number of people came forward with complaints about loss of funds due to poor investment advice, and as a result, the firm is now in liquidation.
Have you been a victim of pension mis-selling?
If you’re a client of Copia Wealth Management, you might be concerned that you’ve been mis-sold to. Here are a few common signs of mis-selling:
- Attitude to risk. The advisor failed to assess your attitude to risk before recommending a financial product to you.
- Lack of information. They didn’t provide you with enough information about the investment; for example, the fees involved, the level of risk etc.
- Too few options. You weren’t presented with a full range of options, nor recommended a product that was best suited to your requirements.
What to do if you’ve been mis-sold to
If you believe that you’ve been a victim of pension mis-selling, you may be able to seek compensation. For example, if you’ve invested with Copia, you may have already been contacted by the liquidator, who will have given you details on what action to take.
To find out if you’ve got a case, get in touch with Goodwin Barrett today. Over the years, we’ve helped hundreds of people win compensation for their mis-sold financial products – to find out more, call us on 0808 163 1659 today or email firstname.lastname@example.org.