Mis-Sold SIPPs – Beaufort Securities – The Situation So Far
SIPPs have grown in popularity in recent years. People appreciate the freedom to dictate where their pension pot is invested, rather than being part of a defined contribution scheme.
However, while SIPPs have been liberating for some, they’ve been a nightmare for others. Mis-sold SIPPs are the latest investment scandal, with thousands of clients losing valuable funds for the future.
Brokers like Beaufort Securities (and advisory firms like City One Securities, or SIPPs providers like Easy SIPP) have had several claims made against them, regarding their mis-sold pension products and advice. If you’ve invested in a SIPP with one of these companies, read on.
What did City One and Easy SIPP do wrong?
City One Securities (alongside St Paul’s Marketing) have had several claims made against them, regarding the mis-selling of SIPPs. One of these SIPP products was the Easy SIPP, which had investments tied up in Beaufort Securities.
Easy Sipp was a product offered by a provider who was connected with the discretionary fund manager, Strand Capital. The FSCS claimed that in 2018, it had paid £5.7 million to 796 ex-clients of Strand; compensation that was distributed into the customers’ SIPPs.
In May 2020, the FSCS confirmed that City One had defaulted with the lifeboat body. This declaration meant that they weren’t in a position to pay the claims made against them. However, that’s not to say that ex-clients aren’t eligible to seek compensation, if they’ve experienced financial loss as a result of the company’s actions.
Beaufort Securities – what happened?
Beaufort Securities collapsed back in 2018, and the demise of the broker was due to a variety of scandals. For example, Panayiotis Kyriacou (an investment manager for the company), was arrested for attempting to defraud the United States. He arranged for the manipulation of trading in the stock of a US venture, then tried to launder the proceeds through purchasing and selling works of art.
As if that wasn’t bad enough, the brokerage company also faced an astonishing number of claims in regards to their investments and fund management – 1,525, according to one report. Of these, some have been rejected, but a larger number have now been paid.
If you believe that Beaufort Securities (or City One and Easy SIPP) have mis-sold your SIPP product, get in touch with our team today on 0808 163 1659.
What happens now?
City One, Easy SIPP and Beaufort Securities have all gone into administration and are no longer trading. However, that doesn’t mean that you’re unable to claim compensation. Although these companies are no longer in operation, they’re still being held accountable for their past acts of mis-selling, and as such, you may be eligible to make a claim.
Here are some of the common signs of mis-selling:
- No-one explained the risks to you. The advantage of a SIPP is that it gives you freedom to invest your contributions in a variety of different places. However, if your financial advisor didn’t explain how volatile those investments were, that places your funds at risk.
- They didn’t assess your attitude to risk. It may be that you’re happy to invest in a higher-risk product, in the hope that it yields better returns in the future. However, it’s not the financial firm’s place to presume this. During your pension-switch, you should have been explicitly asked about your attitude to risk, and how you feel about investing in riskier products.
- You didn’t understand the SIPP. An advisory firm like City One Securities has the responsibility of explaining the SIPP product to you. This should include information like any additional fees, what to expect in the future based on market worst- and best-case scenarios, and more. If they failed to go through the details with you, this is regarded as mis-selling.
- You were pressurised into it. If you felt that the firm were trying to persuade you to invest in a pension product you weren’t totally comfortable with, this indicates they weren’t acting ethically. Throughout the process, you should feel the decision is yours alone. You should also have been offered a variety of SIPPs, rather than being coerced into one specific product.
Making a claim
If you’re an ex-client of City One Securities, Beaufort Securities, or you invested in an Easy SIPP, you may be in a position to seek compensation. The easiest way to find out is to get in touch with Goodwin Barrett’s team today on 0808 163 1659 or email firstname.lastname@example.org. We’ll examine your case for you, then assist you with making a claim.
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