Role of Pension Introducers
If you have transferred your pension from a cold call to a new pension investment, then chances are you have consulted an unregulated pension introducer or rather a marketing company whose role is to introduce individuals to new investment opportunities the idea of a free pension review.
Well, the problem with taking taking this route is that some pension introducers, particularly those who are unregulated have a habit of recommending some investments and financial advisers that lead people to unideal pension schemes, usually self-invested personal pensions or SIPPs with high-risk investments that sometimes result to people losing a lot of money from their pensions.
What is The Job of Unregulated Pension Introducers?
There is a vast number of unregulated pension introducers connecting with regular individuals both in the United Kingdom and abroad, and there is usually a reward in the form of a meaty commission for those who are able to secure substantial pension transfers, often starting with a ‘free pension review’. From boiler room scams to those glossy investment brochures by huge marketing companies, all have played a role in the developing mis-sold pensions crisis.
In November 2017, the FCA stated, as a warning to pension advisers, ‘we have encountered instances where the referral from the introducers is conducted with a transparent investment desire shown by the client and the documentation already done. In accepting business from a pension introducer, the adviser should meet the regulatory requirements as written in the handbook.’’ That implies that there should be no biased activities or the lack of suitable and transparent financial advice.
Most of the clients that we have worked with who initially did business with an unregulated introducer ended up with a self-invested personal pension with a high risk, non-standard investment. If the same has happened to you, then it is about time you consult TheYEC.
Can You Make a Claim Against a Pension Introducer?
This depends on a case by case basis, however unregulated introducers are outside the jurisdiction of the FCA and that means it is hard to hold them liable for what they did and failed to inform you or what they did and did not do.
However, there is a silver lining. Usually, pension introducers will have a financial adviser involved in order to conduct the pension transfer successfully, and it may be with them that you have a financial loss claim. That’s because it is usually the role of the financial adviser to tell you whether the investment is suitable or not.
With our Free initial assessment, you can be able to explore ways to make a claim over your self-invested personal pension.