Self-invested personal pension (SIPP) providers "must feel very nervous" today, according to a law firm, after the Financial Ombudsman Service (FOS) made a "game changer" of a decision against Berkeley Burke SIPP Administration.
The FOS ruled that in the case of Mr A - who invested his entire pension fund of £29,000 in Sustainable Agro Energy, a high risk, unregulated scheme selling bio-fuel investment products in South East Asia - Berkeley Burke failed to ensure that the investment was suitable. Lawyers have said the decision could have repercussions for hundreds of other cases where investors have lost money after putting their retirement funds in esoteric investments via a SIPP, and are now chasing their SIPP provider for compensation. SIPP providers have always argued that the only suitability they need t...
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