Parking Spaces SIPP Mis-Sold
To many people, parking space investment using SIPP pension type seems like an excellent alternative to the normal personal pension option. This is because, Marketing and investment firms offer a return of about 8% or higher to those with SIPP investment, which is more than the standard interest rates.
Parking Spaces SIPP – So, what is the problem?
Well, in a nutshell, parking space investments are high-risk type investments, and the FCA does not regulate them. This simply means the FSCS, FOS, and FCA cannot guarantee the investor. As such, mis-selling occur too often, especially to those who may be unsuitable for the investment in the first place. This puts your hard-earned pensions at an unmanageable level of risk.
This also happens to many other unregulated (meaning they are not under the control of a financial entities or watchdog such as FCA) investments. For this reason, parking space investments look more attractive, especially when they come with a “guaranteed rental period”, which often is up to 2 years where returns are to be generated.
After you invest, you and your parking space are on your own. If you have invested in a car parking space together with many others, today may be a great time to check if you can make a claim.
Your suitability for a parking scheme investment
If by chance you have transferred your pension into a SIPP with a promise of a high return from a parking space, then the chances are that you took this advice from a financial adviser.
The work of your financial adviser is to ensure that you have understood the risks, the investment itself, your suitability, the capacity for loss, and then act in your best interest. However, this does not always happen with FSCS paying out over £77 million last year (from around July 2016) for mis-sold pensions.
Maybe you were contacted by an unregulated marketing firm, who convinced you to invest but by chance, an IFA was involved somewhere, and on their advice that will determine whether you were suitable for the investment, or simply you were mis-sold a parking space, which means you are in a position to claim compensation.
At TheYEC, we are the leading mis-sold SIPP advice specialists, and we are in a position to identify if a client has been mis-sold as well as providing a path towards compensations that you deserve.