We’ve said it before, we say it again:
Do you really want to trust solicitors appointed by the firm which is holding your money or retirement funds hostage?
SIPP Fees For Failed Investment
And now your SIPP provider is chasing you for outstanding fees…
Why should you pay fees for a failed investment? Especially if you feel that your SIPP provider has failed to act in your best interests or to protect your assets?
We fully agree, the whole situation is unfair. You are the only one out of pocket here!
TRG got your money, the IFA got their fees, the SIPP provider keeps raiding whatever is left from your pension fund and is now asking you to settle the account!
You can’t sell the investment, you can’t remove it from the SIPP, you can’t close it down, you can’t draw from your pension and somehow you are still responsible for paying all those fees and charges – and worst of all, you can’t get a clear answer from anyone.
Speak To Your SIPP Provider
Would it not be simpler to speak to your SIPP provider and ask for the options available?
- Some SIPP providers will allow you to remove the asset from the SIPP and let you transfer out for a small fee
- Some SIPP providers will explain that as you may have received compensation from the FSCS you will need their consent to take action
- Some SIPP providers will agree to monthly payments if you are struggling to make annual payments
- Some SIPP providers will reject any proposal
The Alternatives
If that doesn’t work, here are your options:
- you can make a complaint yourself – free of charge
- If you feel uncomfortable kicking those doors in yourself, use the services of companies which specialise in such complaints on a no-win-no fee basis
- If you don’t trust those claims companies and believe a firm of solicitors are best – find an impartial firm of solicitors or any firm not linked with the investment company, check out their fees and customer feedback
- Never pay anyone upfront fees, especially when they have been contacting you
You Can Make A Claim Yourself
Did you know that a recent article revealed that DIY claims stand a good chance of success?
Since the start of 2018, the Financial Services Compensation Scheme, rejected 17.2 per cent of applications from solicitors compared to 17.8 per cent from people making their own applications?
In comparison the figures reveal that claim management companies had the lowest rate of rejections, with an average of 11.1 per cent of cases being denied.
Think First
The problem here that the answers are not straightforward, even when writing this, 250 different scenarios spring to mind. No two cases are ever the same…
It is easy to make a hot-headed decision on the spot when receiving a cold call from someone who is winding you up even more by highlighting the problems. However, we would like to remind you that such decisions should only be made after taking the most important or relevant information into consideration.
We would like to help to put things into perspective:
Credit Rating
- Have those solicitors offering to assist ever mentioned that the non-payment of your fees could be considered breach of contract and the firms could send in the debt collectors?
- Have you considered the impact a negative entry in your credit file could have on your life?
- Can your actions impact your next mortgage or credit application, mobile phone contracts included?
- Can a CCJ impact your next job application?
Depending on where you work or if you’re planning to work in the financial services sector, for the Police, the NHS or even a firm of solicitors, you may find a negative credit rating could have a negative impact on your job applications
- Are you looking for a new landlord and are planning to move into a new place? Landlords will also perform credit checks
- And how would you cope emotionally if the firm registered a CCJ in your name or got debt collectors involved?
Tax
- Have those solicitors explained that this could come with tax implications?
- Are you up to date with your tax affairs and can you handle any HMRC queries without paying for additional advice?
It’s Complicated
If it was as simple as transferring your pension away you would probably have already done it.
You will need financial advice before transferring out or closing your SIPP- but no reputable financial advisor will accept you as a new client if you still hold these tainted assets.
Options available to you as an individual also depend on your personal circumstances:
- Are you over 55 and have taken an income from your pension?
- Do you hold other investments or assets within your pension?
- Are you acting on behalf of the Estate of a deceased person?
Can You Close Your SIPP?
Unfortunately, it is not always as simple as removing the assets from the SIPP in order to close your SIPP down. Here are the questions to consider:
- Has the investment company gone bankrupt or was the firm dissolved?
- There may be a chance for you to close the SIPP
- Is the firm still trading?
- HMRC will have a say in this, it’s not just down to the SIPP provider to remove the asset from the SIPP
- Have you received compensation from the FSCS? Did you check with the FSCS if you have their permission to act? By accepting compensation from the FSCS you have assigned the rights over the proceeds of those investments to the FSCS. That means you can’t sell it or do anything else about it without their consent!
Our final question here is:
How can the solicitors be offering a ‘’potential’’ option for such a large upfront fee unless they are also IFA’s, Accountants and Tax specialists?
You have to remember there is no guarantee of success.
As always, we hope this clarifies an extremely complex situation. However, if it leaves you with more questions, feel free to call us and speak to one of our Financial Claims Consultants for a free no obligation chat.
Pension Claims Experts
ACL Consultancy Ltd have been in operation as a claims management company (CMC) for over 10 years and have offered the lowest flat fee service in the industry since 2017. We welcomed the new Financial Conduct Authority regulation to put a cap on CMC fees.
We are able to work for a reasonable fee because we don’t buy your data from the IFA’s who arranged your pension transfer or the investment company who took your money! We pass these cost savings on to you.
Our team possess a deep knowledge of pension and investment compensation, including overseas property investment, and welcome your call to find what solutions are available to you.
So, you’ve nothing to lose and everything to gain by calling us today.