The self-invested personal pension (SIPP) provider, DAC Pensions, has recently gone into liquidation.
The Financial Conduct Authority intervened with the operations of the company after it was found not to be doing its business with the required level of care and due diligence. For instance, the company was guilty of accepting business from Cypriot and Irish introducers that were not authorised. They were responsible for transferring pensions into a SIPP so that clients could put money into risky assets through a model portfolio.
Have Your Transferred Your Pension?
Most of the time the investments were overseas Collective Investment Schemes that were unregulated and therefore not suitable for most retail clients.
People involved with DAC Pensions often received pension statements showing their pension as performing well, whereas the truth was that their investments were illiquid.
The FSCS only pays compensation after a claim against the correct independent financial advisor has been made. Even though the introducing company might have been fully regulated, there may have been other companies or third parties involved. As a result, you might need to raise a complaint with the Financial Advisor and then take the complaint to the Financial Ombudsman Service (FOS). If the company has either closed down or has no assets, then you need to take your claim to the FSCS. Where the funds lost are more than the compensation you got from the financial advisor, you might be entitled to even more compensation.
In the case where you haven’t correctly progressed with your claim or the company does not respond to it, the FCSC will only award compensation that is calculated based on the value of pension funds transferred in. If for whatever reason the FCSC doesn’t accept your claim, do not be afraid to challenge their decision.
Anyone who had dealings with the company (DAC Pensions) and transferred their pension may very well have been given advice that wasn’t suitable and they should have their transaction(s) reviewed. When choosing a company to help with this, be sure to avoid those ones that cold call you as they have purchased your personal details illegally and will be paying commission to the very company that mis sold you the product.
Next Steps
Call us now for a phone or video consultation with one of our legal experts on 0800 041 8358 to find out if you are entitled to compensation, you may even be entitled to additional compensation if you have successfully claimed in the past.
