To put it simply, the UK’s pension mis-selling scandal stemmed from certain areas of pension investment being unregulated. These include certain types of SIPPs and defined benefit transfers. Unfortunately, many consumers in the UK did not know that such financial schemes were illegitimate. Trusting the advice that they were given, many people have therefore been mis-sold to.
At Expert Pension Claims, we have seen a huge increase in people seeking compensation for their mis-sold financial products. Because of this, we want to shed some light on how exactly the pension mis-selling scandal occurred in the UK, and why so many people are still affected by it.
Why were pensions mis-sold?
The financial services industry is now one of the largest industries in the UK, with a huge range of products and services on offer to the general public and businesses. That being said, it is not uncommon for financial advisors to use crafty tactics to make a “sale”. For example, they may not properly explain the terms and conditions of purchasing a certain product to you.
When it came to people’s pensions, many people were given poor recommendations about their product, and this led to a huge increase in compensation claims.
Are pension products designed to de-value customer investments?
Although pension products have recently come under huge scrutiny from regulatory bodies, it’s important to know that these products were not originally designed to de-value your pension pot.
Like any product or service, pension products are designed with a specific target audience in mind. Speaking of this, the pension mis-selling scandal therefore occurred as a result of investors targeting people outside of this target population. As well as this, advisors used huge incentives and lucrative deals to lure these people in and create a mis-selling culture.
How can I claim compensation for bad pension advice?
To begin the process of claiming compensation for bad pension advice, simply fill in our online form, or call one of our experts on 0161 968 0768. In the meantime, be sure to stay in touch with our blog for industry news and handy pension guides.
Expert Pension Claims is a claims management company. We do charge a fee for our services, but this is only if your claim is successful. We do not charge a cancellation fee. For more information, visit our fees page.