Sipp administrator Guinness Mahon Trust Corporation is currently facing a range of allegations that pension funds were transferred into investments not suitable for need. Many investors are now seeking Guinness Mahon Sipp compensation to try and recoup lost funds and also to obtain justice for problems of mis-selling. If you have been involved with this Sipp firm then you too could be eligible for financial compensation.
Guinness Mahon Sipp issues
Claims made for Guinness Mahon Sipp compensation focus on the fact that the FCA had previously warned Sipp firms against making it possible for investors to invest in non-standard assets within a Sipp. This guidance was provided by the FCA in 2013 but it is claimed that Guinness Mahon Sipp continued to enable investors to put their funds into high-risk non-standard investments for several years after the FCA can drawn a line under the practice. The Guinness Mahon Sipp compensation cases involve investments that were made between 2013 and 2016. Some of the problematic investments include Ethical Forestry and Global Plantations.
Mis-selling Sipps
Claims of Sipps mis-selling are beginning to mount up, not just against Guinness Mahon but other Sipp providers too, such as Liberty Sipp. Allegations of unsuitable investments have been made, as well as the use of unregulated introducers who were used to enable people to invest in non-standard investments. Complaints that have been made to the Financial Ombudsman Service have been upheld several times. One of those unsuitable investments was in Ethical Forestry, which centred around a tree plantation in Costa Rica. Returns offered were high at 15% but Ethical Forestry Ltd is currently in liquidation and the scheme is being investigated by the Serious Fraud Office.
Ruling against Guinness Mahon Sipp
The existing Guinness Mahon cases centre around the allegation that the provider didn’t do adequate due diligence on the investment and should not have allowed anyone to invest in it. The Financial Ombudsman Service has ruled against the Sipp provider and required that Guinness Mahon Sipp pay compensation to those who have been affected by the situation. Compensation should be on the basis of the transfer value of previous pensions, as they would have been before the bad investment was made.
Guinness Mahon Sipp compensation
Claims for compensation against Guinness Mahon Sipp will be based both on the way that the firm checked the potential investment, as well as the lack of care taken in relationships with others involved in the process, such as IFAs. As a result of the Financial Ombudsman Service decision there are now many people who might be able to obtain Guinness Mahon Sipp compensation, both to cover any losses that might have occurred and also to provide compensation for issues that the firm’s alleged lack of due diligence may well have caused.