Investing money for a pension or lump sum in the future can be very advantageous, especially if you still need sufficient support given to your family even as you retire. However, there is the fact that aside from gaining benefits in the long run, you may also encounter risks of losing all your benefits. There are various cases of mis sold pension that circulated the industry, which also made other people lose their confidence to pension providers. A good example of such is what happened with mis sold Santander pension.
What Does Santander Retirement Plan Offer?
Before you proceed with the mis sold Santander pension, you should get an overview of what Santander has to offer. According to Santander, you will receive a tax-efficient payout from the company for your retirement with its deals. Besides such, it is also guaranteed that there are employer contributions to be included in your pension with a plus of life cover. There are various options given to pension holders, such as buying a pension from an insurance company, taking 25% of your account for sum in cash, as well as transferring your money to another provider of pension so that you can let your balance continue to grow after cash withdrawal.
What Is Mis sold Pension?
According to the reports, Santander has been fined for providing bad advices to pension holders, causing their losses of benefits. However, you will not be able to comprehend what occurred between the complainants and Santander without understanding what mis sold pension is. Mis sold pension happens when you are encouraged to transfer your employment pension scheme to a personal plan without you having to leave your company. Furthermore, it is possible that you will be losing all your benefits for the transference of money will not take place at all. Most people who missell their pension tend to be unaware of the process itself, resulting to loss of benefits. Usually, you will be badly advised regarding occupational scheme.
The Fine Santander Faces
According to the recent reports, mis sold Santander pension have resulted to substantial fine of £12.4m, which will be considered a payout for mis selling. According to FCA, which acts as the regulator, the company should provide the fine as response to damages it caused due to unsuitable investment advice. Figures are presented, such as in terms of investment process failures and premium investment promotions, which proved mis selling spearheaded by Santander.
Solving the Issue in the Process
FCA manages to solve the mis sold Santander pension concern by asking the bank to coordinate with affected customers and give them opportunity to withdraw from their investment. Presently, Santander is also asked to provide a new annual review process for premium investments customers to avoid breaking the regulatory standards.
What Santander Has to Say
The mis sold Santander pension also led to Santander apologizing to its customers. According to the bank, they never met the regulatory standards of FCA, which also made them agree to shut its financial advice office in February 2013. https://www.mis-soldpension.com