SIPP Mis-selling Explained: How to Tell If Your Pension Was Mis-sold
Your SIPP was likely mis-sold if you were moved from a workplace pension into a SIPP holding unregulated or illiquid assets — storage pods, overseas property, mini-bonds — and the risks were not clearly explained. Compensation up to £85,000 per claim is available via the FSCS, with uncapped amounts available where the adviser firm is still trading.
What is a SIPP?
A Self-Invested Personal Pension is a UK-regulated pension wrapper that allows the holder to choose their own investments. Mainstream SIPPs hold funds and equities; the problem arises when advisers placed savers' pensions into unregulated, exotic assets.
The five warning signs
1. You were 'cold-called' or contacted by an introducer about a free pension review.
2. Your pension money ended up in storage pods, overseas property, or a mini-bond.
3. You were told the investment was 'low-risk' or 'guaranteed'.
4. Your adviser earned a large up-front commission from the underlying investment.
5. The fund is now suspended, illiquid, or in administration.
What can I claim?
Compensation aims to restore you to the position you would have been in had the unsuitable advice never been given. The exact figure depends on your losses and the route used (FSCS, FOS or PI insurer).
How long do I have?
The standard limitation period is six years from the advice, or three years from the date you reasonably became aware of the loss — whichever is later.