Pension AVC Mis-selling?

Contact the Pensions Advisory Service in the first instance. Pensions Ombudsman site

You might be better off with the Financial Ombudsman Service

The Pensions Ombudsman deals with complaints about the way pension schemes are run, whereas FOS deals with complaints about the sale of pension schemes.

If your friend was a member of the NHS pension scheme at the time of the sale, but was then advised to take out AVCs, then his case should have come up in the "Pension Review" that the industry was ordered to carry out a few years ago. It's a little strange that it doesn't appear to have done - has your friend moved and possible not told the insurance company of his new address?

There probably is some point in investigating further - if the AVC was mis-sold, and your friend isn't out of time to claim compensation, then he could potentially be due additional benefits worth tens of thousands of pounds. Of course, he might not be due anything at all, or his complaint might be out of time or otherwise not pursuable, but it's worth checking.

If he has any doubt at all about the suitability of the AVC contract at the time it was sold, then he should make a complaint to the financial adviser who sold it to him. If he is unsure which firm is responsible for the advice given by the financial adviser at the bank (it might not necessarily be the bank) he should complain to the insurance company that administers the policy - they should swiftly refer it to the right place.

If he has any doubt about whether the AVC remains suitable for him now, he should arrange to speak to a financial adviser qualified to advise on pensions. If he's a member of an NHS union, they should be able to put him in touch with a suitable adviser.

Yes. Have a look at the advice letter written by the bank. Was there one? Should have been. If so, did it explain all the reasons why you should have an AVC instead of joining the NHS scheme? If so, and you accepted them, then end of story. Otherwise, write to the bank and say that it has come to your attention that the advice to buy an AVC may have been wrong and would the bank kindly look into it. Don't go to the Financial Ombudsman Service first (a) because it's only reasonable to let the bank have first shot, and (b) the FOS is overloaded. The bank should reply within 5 days that it has received your complaint and will look into it and get back within a month. If after a month it has still not given you a final rersponse it shoudl write to you and tell you why, and how long it will still take. When you receive its response, decide whether you like it. If you do, then write and accept. If you don't, write back and see if it will budge. If not, then go to the FOS. It's free, but there is no guarantee that it will side with you.

Rob Graham

I have said it before but will repeat it here - IFA will only ever recommend the option of best reward to them (ie. highest kickback). You are better off "pin-sticking" when choosing an option in which to invest.

Why don't you choose an IFA who charges a fee for advice rather than commission? Wouldn't this get round your problem?

Rob Graham

"robgraham" gurgled happily, sounding much like they were saying:

Or even an honest, above-board commission-based IFA.

The one we use takes their fee solely from commission, but if they feel the commission is "too high", they apply some of it to your investment.

IME, the NHS scheme is just about the best around (6% employees plus 14% employers, I believe - indexed linked etc). So it beggars belief that anyone would have advised your friend to leave.

I think his first move should be to check the advice he actually received - I suspect it was to join an AVC, but NOT to leave the NHS scheme. Nothing you say suggests the latter was ever suggested. Indeed, is he sure he's not paying into both?

LOL

It might if they knew more than f*ck all.

Thank you all for the input.

I will ask them to get all the paperwork together and take a look.

Cheers.