Mis-Sold SIPPs: Know the risks and spot mis-selling

Self-Invested Personal Pensions (SIPPs) can be a good way to save for retirement. But some people have been mis-sold SIPPs and lost money as a result.

What are SIPPs?

  • SIPPs let you combine your pensions into one fund
  • You can invest your SIPP in various approved options
  • SIPPs offer flexibility but also have risks

What is SIPP mis-selling?

  • Some financial advisers have misled people into transferring to SIPPs
  • They may promise high returns from risky, unregulated investments
  • These investments can fail to deliver and aren’t protected by compensation schemes

How to spot if you’ve been mis-sold

Mis-selling happens when advisers:

  • Put your money in risky investments without explaining the risks properly
  • Don’t match investments to your needs and risk tolerance
  • Cause you to lose significant money

You may have a claim for compensation if:

  • Your adviser didn’t explain investment changes clearly
  • Your SIPP value has gone down despite promises of growth
  • You weren’t warned about risks that could reduce your investment’s value

The Financial Conduct Authority’s concerns

The FCA has highlighted serious issues with how some advisers handle SIPPs:

  • Advisers aren’t ensuring investments are safe and suitable for clients’ needs

If you think you’ve been mis-sold

  • Be aware of your rights as an investor
  • Look into your options for seeking compensation


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