When transferring a pension, the financial risks should always be considered. It’s your financial advisor’s job to ensure that you understand the risks involved, and are happy to take them. Regrettably, some firms don’t explain or assess this, which is regarded as mis-selling.
Guinness Mahon are one such firm. The company, which has now gone into administration, faces 1,000s of SIPP mis-selling complaints. Here’s more information about the situation.
What did Guinness Mahon do?
Guinness Mahon were a SIPPs provider, who had been in operation for several years. The FSCS received over 1,000 complaints relating to their practices, with most focusing on the firm’s lack of due diligence, and investment in high-risk funds that placed client pension pots in jeopardy.
After going into administration, Guinness Mahon’s administrators forwarded documents to the FSCS, which will be used to decide whether or not the company owes a civil liability to its customers.
Problems with ‘legacy issues’
John Moret, a SIPP veteran, spoke out about the claims against the company, and suggested that the FSCS stop dealing with complaints from over eight years ago.
He commented: “It would be really helpful if the regulator accepted that there was a period between 2007 and 2012 when providers were not entirely clear what their responsibilities were, particularly in terms of investment due diligence.”
However, while it’s true to say that guidance on due diligence may have been more ambiguous back then, it doesn’t change the fact that customers have been left out of pocket as a result of problematic SIPP products.
Have you got a claim against Guinness Mahon?
If you’re a Guinness Mahon customer, you may be worried that you’ve been a victim of SIPP mis-selling. Rest assured, the FSCS has announced that eligible clients can make a claim against the firm, up to the value of £85,000.
Here are just a few signs that you might have been mis-sold your SIPP:
- The risks weren’t explained to you. Your advisor should have explained the risks involved with transferring your pension, and also assessed your attitude to risk.
- You weren’t told that it might be more beneficial to stick with your existing pension. For some people, keeping their original pension is the best option – a good financial advisor will always check to see if this is the case for you.
- You weren’t provided with adequate information. The details of the SIPP weren’t outlined to you, including additional fees, and best / worst-case scenarios.
- You were pressurised to transfer your pension. Investing in a SIPP should be solely your choice, and you shouldn’t feel pressurised to transfer your pension if you don’t want to. A pushy approach is a clear-cut example of mis-selling.
What to do if you’ve been mis-sold to?
If you think you’ve been mis-sold your SIPP, help is at hand. Goodwin Barrett are specialists in this field, and over the years, we’ve helped countless clients to win the compensation they’re duly owed. To find out more, call our team on 0808 163 1659 today or email email@example.com.