Did your financial advisor ever suggest adding DFM Portfolios to your SIPP scheme? If so, you might have mis-sold SIPP pension products, and you could have lost money as a result.
Many DFM Portfolios breached Financial Conduct Authority (FCA) rules. In many cases, advisors recommended unsuitable investments for their clients, risking their retirement savings. Clients are not correctly made aware of the risk and lose money they can not afford to lose.
Does this sound familiar? You could recoup your losses.
If you have ever invested in a DFM Portfolio, you need to keep reading ahead.
Most investments go into a scheme, but Discretionary Fund Management operates slightly differently. Discretionary Fund Managers work on creating portfolios of suitable bonds to entice their clients. The portfolios are usually designed with a theme in mind, to spread risk or maintain an association with a specific industry or region. For instance, a DFM Portfolio might be labeled “Mining” or “Central America.”
The Discretionary Fund Manager is often given free rein to invest in their choice of bonds, rather than being limited to a single or multiple direct investments.
While some DFM Portfolios are low-risk and are a wise investment for those with retirement savings, others are much riskier and unregulated by the FCA. DFM Portfolios aren’t an issue in and of themselves, but their nature makes them wide open for abuse. Unscrupulous Discretionary Fund Managers mislabel their portfolios, which then get rolled into SIPPs.
Financial advisors suggest these products to their clients and minimize the risk. When the house of cards comes crashing down, these mis-sold SIPPs end up costing people their entire pension pots.
DFM Portfolios make it harder for the FCA to regulate investments – it’s not always clear what’s inside the package. Fund managers slip risky, unregulated bonds into these products, in a practice that the FCA calls a “third-generation scam.”
FCA rules are meant to encourage and foster trust between clients and advisors. When these rules are breached, it damages the reputation of the entire industry.
You might have been mis-sold SIPP products that included DFM Portfolios.
Our claims experts can help you make a claim and get the mis-sold SIPP compensation you are entitled to under the law. Apply online today for an information pack to learn more.
If a financial advisor advised you to invest in an unregulated investment such as DFM Portfolios, it is still possible to claim compensation. Where the advisor is still operating, a claim can be pursued against the financial advisor via the Financial Ombudsman Service (FOS).
If an advisor is no longer operating, the Financial Services Compensation Scheme (FSCS) pays compensation for valid mis-selling claims against any financial advisor who has been declared in default by them.
If your pension included investment in DFM Portfolios, you could be entitled to compensation.Apply Now
In this article, Allegiant’s Pensions & Investments Manager, Andy Ramsay, explores the fundamental differences between between the Court and Ombudsman routes for resolving pension & investment claims. The article highlights key differences in:-
Andy further explores out-dated preconceptions about Claims Management Companies. This short summary is essential reading for anyone planning on making a pension or investment claim with the assistance of a CMC or law firm.Click to Read
You may have heard of the Financial Services Compensation Scheme (FSCS), but do you fully understand its vital role within the UK’s financial services sector? In this short piece, we look at:-
This article will be of particular interest to anyone with a potential compensation claim against a financial service provider that has collapsed.Click to Read
The Financial Conduct Authority (FCA) has identified ‘serious and ongoing failings’ by both Individual Financial Advisers (IFAs) and Self-Invested Personal Pension Providers. Typically, mis-selling is related to the “wrong” type of investor being given poor or misleading advice as to what investments were relatively safe and right for them. In this summary, we look at What a SIPP is, and how they have been mis-sold, together with the FCA’s review into sector malpractice.Click to Read
Pre complaint investigation and analysis. No paperwork? Don't Worry! We could still help.
Once we've assessed claim prospects, we make a pension complaint to the Ombudsman or FSCS, where appropriate
Pension complaint response received. We'll carefully analyse the response and advise you on how to proceed.
If appropriate resolution cannot be reached with a live firm, and we disagree with their stance, we will refer the claim to Ombudsman on your instruction.
Allegiant always aligns great value with exceptional service. This winning formula has seen us emerge as one of the UK’s pre-eminent Claims Management Companies in recent years. See why Allegiant is a great choice below. *All information correct as at 28 August 2021.
How our fees work in practice:
• Compensation is £1,000, the fee is £150 plus VAT £30. This means the amount payable to us is £180 leaving you with the benefit of £820.
• Compensation is £3,000, the fee is £450 plus VAT £90. This means the amount payable to us is £540 leaving you with the benefit of £2,460.
• Compensation is £10,000, the fee is £1,500 plus VAT £300. This means that the amount payable to us is £1,800 leaving you with the benefit of £8,200.
NB. It is possible that our fee may become payable before you have access to your pension or investment which may result in you having to pay our fee from your own funds.
You can cancel for free at any time within 14-days without giving any reason and without incurring any liability. You can communicate your cancellation by telephone, post, email or online.
You can cancel this agreement at any time after the 14-day cancellation period. However, if a complaint submitted by us is successful, the Success Fee will apply in the usual way.
You can cancel by post: Allegiant Finance Services Limited, Freepost RTYU–XUTZ–YKJC, 400 Chadwick House, Warrington Road, Birchwood Park, Warrington, WA3 6AE; (b) by email: firstname.lastname@example.org; (c) by telephone: 0345 544 1563; or (d) online at https://allegiant.co.uk/legal/cancellation.
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