Cherish Wealth Management: Mis-Sold Pension Claims
TL;DR
If you were advised by Cherish Wealth Management to transfer your pension into high-risk or inappropriate schemes, you may be entitled to compensation. Learn how to identify signs of pension mis-selling and work with no-win-no-fee solicitors to recover your losses.
Understanding Pension Mis-Selling
Pension mis-selling happens when financial advisors provide unsuitable advice that leads individuals to transfer their retirement savings into high-risk or inappropriate schemes. Firms like Cherish Wealth Management have faced allegations of promoting risky investments without proper justification.
Common signs of a mis sold pension include:
- Receiving advice without a proper risk assessment.
- Being encouraged to invest in unregulated or high-risk schemes.
- Lack of transparency about fees and potential risks.
- Pressure to make quick decisions without adequate information.
If you suspect you’ve been affected by pension mis selling, a free consultation can help clarify your options and determine eligibility for compensation.
Risks of Final Salary Pension Transfers
Transferring out of a defined benefit (final salary) pension is rarely advisable due to the loss of guaranteed benefits. Key risks include:
- The loss of safeguarded income for life.
- Exposure to market volatility and investment risks.
- High fees associated with alternative pension products.
- Potential tax implications that reduce overall returns.
If Cherish Wealth Management advised you to transfer your final salary pension without fully explaining these risks, you may have grounds for a claim.
Identifying Mis-Sold SIPPs
SIPPs (Self-Invested Personal Pensions) are legitimate investment vehicles but were often mis-sold by firms targeting individuals with existing workplace pensions. Warning signs of a sipp mis selling case include:
- Investments in high-risk assets like overseas property or storage pods within your SIPP.
- Lack of diversification in your investment portfolio.
- Hidden fees eroding your retirement savings.
“The professional claims review exposed how my SIPP was entirely mismatched to my risk profile.” – John R., a client who secured compensation
Common Tactics in Pension Mis-Selling
Unscrupulous advisors often use deceptive strategies to push unsuitable pension transfers. These tactics include:
- Projecting unrealistic investment returns to entice clients.
- Failing to disclose exit penalties or hidden charges.
- Recommending transfers solely to earn commissions rather than acting in the client’s best interest.
Compensation Pathways
If your case involves a valid claim for a mis-sold pension or SIPP, there are several avenues for recovering losses:
- The Financial Ombudsman Service (FOS): Handle complaints against financial advisors or firms.
- The Financial Services Compensation Scheme (FSCS): Provides compensation if the firm is insolvent.
- Legal Action: Pursue negligent parties through the courts for significant financial losses.
A no-win-no-fee agreement ensures that you can pursue your claim without upfront costs. Experienced solicitors specializing in pensions can guide you through the process and maximize your chances of success.
Average Compensation for Mis-Sold Pensions
The amount of compensation varies depending on the extent of financial loss and the specifics of each case. On average, victims may receive tens of thousands of pounds in compensation. Examples include:
- Mr. P: Awarded £88,183 for bad advice on transferring his British Steel Pension.
- Mr. W: Awarded £113,657 for transferring his workplace pension into an unsuitable private plan.
- Mr. D: Awarded £85,000 for poor advice regarding his British Steel Pension transfer.
Time Limits and Next Steps
Pension claims are subject to strict time limits. Typically, claims must be filed within six years from the date of the transfer or three years from when you first became aware of the issue. Acting promptly is essential to ensure your claim is valid.