Have you ever invested in a Contract For Difference (CFD) as a part of your SIPP? If so, you may have been mis-sold SIPP pension products by your financial advisor.
Tax rules have changed, and it is now possible to use your SIPP to invest in CFDs and other derivatives, providing you with tax relief on your contributions. CFD issuers are also able to offer dedicated SIPP accounts to their clients. As a result, many financial advisors have seen an opportunity in CFDs as a part of their SIPP offerings. Unfortunately, they sold them to unsuitable clients without advising them of the risks.
Did this happen to you? Were you convinced to move your retirement savings from a safe and reliable scheme into an unregulated CFD? If so, you might have been mis-sold SIPP products. The Financial Services Compensation Scheme (FSCS) has now made mis-sold SIPP compensation for people like you.
What are CFD Investments?
Contracts for Difference (CFDs) are contracts involving specified financial instruments, such as shares, forex, and commodities, between investors and investment banks or firms. When the contract duration comes to an end, the parties settle the difference between the financial product’s opening and closing prices.
CFDs allow you to trade on margin and sell if you think prices will drop, or buy if they rise. This flexibility is very desirable and attracts a lot of investors. However, CFDs come with inherent risk. If your financial advisor did not make you aware of this risk, or they recommended CFDs that weren’t appropriate for your financial situation, you might have been mis-sold SIPP products.
If you had a CFD Investments, you might be entitled to Mis-sold SIPP Compensation
Did your financial advisor suggest that you invest in a CFD as a part of your SIPP? If you lost money on a risky SIPP, you could be eligible for mis-sold SIPP compensation.
- Did your financial advisor explain the risks of pension transfer and investment in a CFD?
- Did your financial advisor clearly define CFD Investments to you before investing your money?
- Was your financial situation accurately assessed?
- Do you feel like you were or misled or pressured into pension transfer or investment into a CFD?
- Were you made aware that your financial return would depend on the performance?
- Did your financial advisor list their fees and charges for you before you invested with them?
- Did they tell you that you were investing in an unregulated CFD investment?
- Were you made aware that if you exceeded the tax-free investment limit of £40,000, you would be subject to 55% income tax?
- Do you feel that you were given flawed advice about your SIPP transfer? Did it negatively impact your finances?
Our claims experts can help determine if you were mis-sold SIPP pension products that included CFD Investments. Get in touch with us today and we will begin investigating your case to see if you are eligible for mis-sold SIPP compensation. Apply online today for an information pack to learn more.
FSCS CFD Investments Claim
CFD Investments has been declared in default by the Financial Services Compensation Scheme. This means that the UK’s compensation scheme for failed financial services firms will pay compensation for valid mis-selling claims. Allegiant can assist you with claims to the FSCS about CFD Investments . Fill in our online application form to get started.
You do not need to use a claims management firm to make your claim and if your complaint is not successful you can refer it to the Financial Ombudsman Service or in the case of a failed firm, the Financial Services Compensation Scheme, for free.