Claim Against a Pension Adviser — SIPP and DB Transfer Mis-selling

Pension advisers have among the highest duties of care in financial services. Advice to transfer out of a defined benefit pension or into a high-risk SIPP carries the potential for catastrophic, irreversible loss. If your pension adviser got it wrong, you may be entitled to significant compensation.

Quick Answer: Poor pension advice — particularly DB transfers and SIPP switches into high-risk assets — is one of the largest categories of UK mis-selling. The FCA found 47% of DB transfer advice was unsuitable and the FSCS uphold rate for pension advice claims exceeds 70%. Claims run via FOS (up to £430,000) or FSCS (£85,000). Source: FCA PS22/13; FSCS data.

What a Pension Adviser Must Do

Under FCA COBS 9 and the Pension Transfer Specialist rules, any adviser recommending a pension transfer must:

Conduct a full Transfer Value Analysis (TVA) using the FCA's prescribed methodology
Assess your attitude to risk, capacity for loss and retirement income needs
Compare the guaranteed income you are giving up against realistic projected returns from the alternative
Obtain a Transfer Value Comparator (TVC) for defined benefit transfers
Give a clear, written recommendation — the default should be to stay in the DB scheme unless transfer is clearly in your interest

Key stat: the FCA found in a 2020 review that 47% of defined benefit pension transfer advice reviewed was unsuitable.

The FCA PS22/13 Redress Scheme

In 2022, the FCA introduced PS22/13, a mandatory redress scheme for unsuitable DB pension transfer advice given between 1 October 2018 and 31 March 2021. Under this scheme, firms are required to proactively review the advice they gave, contact affected clients, and calculate redress using a standardised actuarial methodology comparing DB versus SIPP outcomes.

If your DB transfer was in this period and you have not been contacted, contact us immediately — your adviser may be avoiding their obligations.

SIPP Mis-selling by Pension Advisers

Many pension advisers recommended transferring client pensions into SIPPs holding unregulated investments — care home rooms, storage pods, overseas property or loan notes. The FCA's "gatekeeper" principle (confirmed in the Berkeley Burke FOS determination, 2018) means the SIPP operator may also bear liability, in addition to the advising firm.

Named Pension Advisers and SIPP Operators in Default

Rowanmoor Personal Pensions — FSCS default December 2023, £124m potential liability
Hartley Pensions — FSCS default February 2024
Berkeley Burke — FSCS default April 2020, £58m paid
British Steel Pension Scheme — 2,000+ unsuitable transfers under FCA review

See our full failed firms list.

Time Limits

6 years from when advice was given, OR 3 years from when you discovered the problem. PS22/13 creates additional obligations for firms regardless of limitation. See our time limits guide.

Frequently Asked Questions

Can I claim against a pension adviser who recommended a DB transfer over 6 years ago?

Possibly yes. If you only recently discovered the transfer was unsuitable — for example, after receiving an FSCS letter or a new pension review — the 3-year date-of-knowledge rule under Section 14A of the Limitation Act 1980 may apply. The FCA's PS22/13 scheme also creates fresh obligations for firms in the October 2018–March 2021 window regardless of limitation.

My pension adviser has retired. Can I still claim?

The adviser's firm may still be liable, and their professional indemnity insurance may cover the claim even after the adviser retires. If the firm has gone into FSCS default, the FSCS pays up to £85,000 per eligible claimant.

I was told the transfer was a good idea at the time — can I still claim?

Yes. The legal test is whether the advice met FCA suitability standards, not whether it seemed reasonable to you at the time. Advisers cannot rely on client agreement to defeat a suitability claim.

What is the average pension mis-selling payout?

Average FSCS pension advice claims paid £53,800 in 2024/25; average DB transfer claim losses are £82,600. FOS awards on unsuitable pension advice can reach the full £430,000 cap for larger transfers.

Talk to us

Free assessment on 01228 272 395 or start your claim online. Related pages: SIPP mis-selling, DB pension transfer claims, adviser gone bust.