Mis-Sold Pension Claims

If you received advice about your pension that turned out to be unsuitable, incorrect or incomplete, you may have grounds to make a mis-sold pension claim. This page explains what pension mis-selling is, who may be able to claim, and how the process works.

What Is a Mis-Sold Pension?

Pension mis-selling occurs when a regulated financial adviser recommends a course of action relating to your pension that is not suitable for you. In simple terms, it means you were given pension advice that should not have been given — either because it did not reflect your financial situation, your attitude to risk, your needs or your existing benefits.

Pension mis-selling is distinct from simply making a loss on an investment. Markets go up and down, and not every loss means something went wrong. Mis-selling relates specifically to the quality and suitability of the advice given to you by a regulated professional.

What Types of Pension Advice Can Be Mis-Sold?

Mis-selling can arise in a number of contexts, including:

• Advice to transfer out of a defined benefit or final salary pension scheme
• Advice to move pension funds into a self-invested personal pension (SIPP)
• Advice to invest pension money into high-risk or unregulated products
• Advice that did not adequately explain the charges involved
• Advice to give up guaranteed retirement income or benefits
• Advice that did not take account of your true attitude to risk
• Advice that recommended switching pensions without a clear benefit to you

What Makes Advice Unsuitable?

Financial advisers who are regulated by the Financial Conduct Authority (FCA) are required to ensure that the advice they give is suitable for each individual client. The FCA sets out its suitability requirements in the Conduct of Business Sourcebook (COBS 9). This means they must:

• Understand your personal financial circumstances and objectives
• Assess your attitude to risk accurately and honestly
• Explain all significant risks clearly and in a way you can understand
• Compare the advantages and disadvantages of any recommended transfer
• Consider whether staying in your existing pension might be more appropriate
• Provide you with a written suitability report explaining the basis of their recommendation
• Disclose all charges and how they are calculated

If an adviser failed to do any of the above, or if their recommendation was wrong given what they knew about you, there may be grounds for a mis-selling complaint.

Who Can Make a Mis-Sold Pension Claim?

You may potentially have grounds for a claim if:

• You received regulated financial advice about your pension from a firm or individual authorised by the FCA
• The advice resulted in a transfer, switch or investment decision
• You suffered a financial loss, or gave up benefits you were not adequately warned about
• The advice was not suitable for your individual circumstances

It is important to note that not every poor pension outcome means advice was wrong. The question is whether the adviser met their professional and regulatory obligations to you at the time the advice was given.

Can I Make a No Win No Fee Pension Claim?

Edward & Amaury Solicitors can often consider eligible financial mis-selling matters on a no win no fee basis. The arrangement is not available automatically and depends on an assessment of the advice, evidence, losses, time limits and available claim route. If funding can be offered, any success fee, deduction, disbursement and other relevant term will be explained in writing before you decide whether to proceed.

Read our complete guide to no win no fee pension claims.

What Losses May Be Recoverable?

Compensation for a mis-sold pension claim typically aims to put you back in the position you would have been in had the unsuitable advice not been given. This may include:

• The value of guaranteed benefits given up (for example, the income you would have received from a final salary scheme)
• Investment losses directly attributable to unsuitable advice
• Charges paid as a result of the advised transfer or investment
• In some cases, interest on losses

What is recoverable depends on the specific circumstances of your case, the route you take and how compensation is calculated. We cannot predict or guarantee an outcome for any individual case.

What Documents Might Help?

The following documents may be relevant to a mis-sold pension claim. Do not worry if you do not have all of them — it is worth making an initial enquiry regardless.

• Pension transfer report or suitability letter from your adviser
• Pension statements from before and after the transfer
• Risk profile or attitude to risk questionnaire
• SIPP or personal pension paperwork
• Investment documentation relating to the recommended products
• Any charges, fees or commissions information
• Correspondence with your adviser or their firm
• Any complaint letters already sent, or responses received

What Are the Time Limits?

Time limits can apply to mis-sold pension claims and vary depending on the route available to you. For Financial Ombudsman Service complaints, you generally must complain within six months of receiving your adviser's final response. Different rules apply to FSCS applications and legal claims. If in doubt, seek advice promptly.

Routes for Making a Claim

There are three main routes for pursuing a mis-sold pension claim:

Frequently Asked Questions