What are the time limits for a mis-sold pension claim?

If you’re worried that you’ve been mis-sold a pension, one of the biggest questions that’s likely on your mind is “What’s the time limit for making a mis-sold pension claim?”

Well, you’re not alone – this is one of the most common questions we get asked.

Pensions can be confusing, but understanding your rights is really important. In this post, we’re going to clear things up. We’ll talk about how long you have to make a claim and explain what mis-sold pension claims can cover.

By the end of it, you’ll have all the basic information you’ll need to make an informed decision about what to do next.

• Types of claims for pension and investment mis-selling
  • Not being properly advised on investment risks
  • Lack of consideration of personal circumstances or risk attitude
  • Over-investment in a single investment
  • Unnecessary pension transfers
  • Selling of esoteric or high-risk investments
• Limitation periods for different types of claims
• Exceptions to the limitation periods

Types of claims for pension and investment mis-selling

Navigating the world of pensions and investments is no easy task, especially when things go wrong. Mis-selling claims in this area can take various forms, and it’s important to understand each one, so you know you’re getting the best compensation for your claim.

Here’s a rundown of the different types of pension and investment mis-selling claims:

1. Not being properly advised on investment risks

One of the most common mis-selling claims arises when financial advisors fail to fully explain the risks associated with an investment. Every investment carries some level of risk, and financial advisers have a responsibility to fully explain this to you.

2. Lack of consideration of personal circumstances or risk attitude

Your financial advisor should take into account your personal circumstances, including your financial goals, current financial situation, and risk tolerance. Mis-selling claims can occur if these factors are not properly considered, leading to unsuitable investment advice.

3. Over-investment in a single investment

Diversification is key in investing. If you’ve been advised to put a large portion of your funds into a single investment, this could lead to a mis-selling claim, particularly if this advice led to an unnecessary concentration of risk.

4. Unnecessary pension transfers

Transferring your pension can sometimes be beneficial, but it can also be a red flag for mis-selling. If you were advised to transfer your pension without a clear, beneficial reason, or without being informed about the potential downsides, you might have a valid final salary transfer mis-selling claim.

5. Selling of esoteric or high-risk investments

Finally, selling unconventional, esoteric, or high-risk investments to individuals without proper warning or consideration of their suitability is a serious concern. These types of investments can lead to significant losses and are often unsuitable for the average investor.

If you find yourself a victim of any of these types of mis-selling, it’s important to know that you have the right to pursue compensation.

Understanding these different claim types is the first step towards getting your hard-earned money back in your pocket.

Limitation periods for different types of claims

Understanding time periods for pension and investment mis-selling claims is crucial for anyone suspecting they’ve been mis-sold. These periods vary depending on the type of claim and the stage of the complaint process.

• Complaints to a Business: If you believe you’ve been mis-sold a pension or investment, the first step is usually to lodge a complaint directly with the business involved. The limitation period for this action is generally six years from the date of the transaction or event that led to the mis-selling.
• Final Response Letters: After making a complaint, if you receive a final response letter from the business, the Financial Ombudsman Service (FOS) typically allows you six months from the date of this letter to escalate your complaint to them.
• Time Limits for Making a Claim: It’s important to note that the clock starts ticking once you first become aware, or should reasonably have become aware, that you may have been mis-sold. This can sometimes be many years after the initial investment or pension transfer. The standard time limit set by UK regulators in such cases is three years from the date you became aware of the potential mis-selling.

If you miss these deadlines, you may lose the right to have your claim heard or to seek compensation.

Want some clarity on your specific timeline? Get in touch with the team at GCA for a no-obligation chat.

Exceptions to the limitation periods

While there are standard limitation periods for pension and investment mis-selling claims, there are certain exceptions that can extend or alter these time frames.

It’s important to be aware of these exceptions as they could significantly impact your ability to make a claim:

• Lack of Awareness: If you were unaware, and could not reasonably have been aware, that you had been mis-sold a financial product, the limitation period might not start until you gain this knowledge. This can extend the period significantly in some cases.
• Fraudulent Concealment: In cases where there has been deliberate concealment of relevant information by a financial advisor or institution, the limitation period may be extended. This is because the standard limitation period assumes that the claimant had access to all necessary information.
• Disability: If the claimant is living with a disability that prevents them from managing their affairs and recognizing that they have been mis-sold a product, the limitation period may be postponed.
• Regulatory Findings: Sometimes, a regulatory body’s findings can impact limitation periods. For instance, if a regulator uncovers widespread mis-selling or specific malpractices after an investigation, this might extend the time limits for affected consumers to file a claim.
• Exceptional Circumstances: In certain exceptional circumstances, courts or regulatory bodies may decide to extend or alter limitation periods. These are typically evaluated on a case-by-case basis.

Making a claim for compensation

If you’re worried that you’re a victim of pension mis-selling, get in touch with our team of specialists today. We have years of experience in helping people just like you claim back what is rightfully theirs.

At Spencer Churchill Claims Advice, we know that your pension represents a lifetime of hard work. We can’t promise any specific outcome, but we can guarantee that our experienced team will do everything they can to win you the best possible compensation.

Give us a call today on 01204 929 929 to book in your free, no-obligation consultation.