What Is Pension Mis-Selling?
Pension mis-selling is not about market losses alone.
It concerns whether the advice process complied with regulatory standards and whether the investment was suitable for you.
In many formal investigations, the following issues arise :
- Suitability and risk appetite assessment
- Disclosure of regulatory status
- Explanation of product structure
- Transparency of commissions and fees
- Ongoing post-sale obligations
- Complaint handling conduct
1. Suitability & Risk Profile
Before recommending an investment, a broker should:
- Conduct a detailed Fact Find
- Assess your financial position
- Record your risk appetite
- Evaluate your investment experience
- Consider your age and retirement timeline
- Assess concentration risk
A high-risk equity-style investment placed into a near-retirement pension may raise suitability questions.
2. Product Structure & Transparency
You should have been clearly informed:
- How the investment operates
- Whether it is a fund, loan note, structured product or private placement
- Whether it required licensing or authorisation
- What risks are attached
- Liquidity restrictions
- Exit conditions
If these were not clearly explained, that may be relevant.
3. Regulatory Status
It should have been clear:
- Whether the broker was acting as an independent intermediary or tied agent
- Which elements of the transaction were regulated
- Whether any part of the investment fell outside Central Bank authorisation
- What consumer protections applied
4. Fees & Commissions
You are entitled to know:
- What upfront commissions were paid
- What ongoing trail commissions were paid
- Who paid those commissions
- Whether the broker had a financial incentive to recommend that product
- How fees were disclosed
Transparency is fundamental to trust.
5. Ongoing Obligations
After sale, you should have received:
- Performance updates
- Notification of underperformance
- Clarification of material changes
- Proper complaint handling
Silence is not always compliance.
Pension mis-selling is ultimately about process integrity — not just outcome.