BARCLAYS PENSION MIS-SELLING
JULY 2012 - SECOND PARLIAMENTARY LOBBY
Following continued delays in reaching settlements for members of the Barclays Investment Victims Club we were able to organize, with the help of one of our members' MP, our second Parliamentary Lobby which took place on Tuesday 10th July 2012 at Portcullis House.
Many of our members MP's attended and we hope they now put into action their supportive words.
To see the video of the event please click here
HOW IT STARTED
This website was set up by people who were persuaded by Barclays Bank sales staff to entrust most of their life savings into 2 volatile and risky investment called the “Morley” now Aviva Global Income Fund which lost them huge amounts of money. There were two products: - the cautious global income fund and the balanced global income fund. They were managed by Norwich Union which in 2008 renamed itself "Aviva". Sadly the cautious global was not cautious and the balanced global was not balanced. They were specialist funds using derivatives such as covered call options and their prices fell very steeply in the 2007-2009 market crash. Although the decision to recommend these funds was taken by Barclays, which earned a whopping commission from each sale, Norwich Union/Aviva managed the funds and described them from the start as high risk funds when launching them in June 2006. Barclays deliberately misclassified these two funds and sold them chiefly to retired people who had no wish to gamble with their money. 12,331 bank customers were persuaded to invest in the global income fundes and almost all of them lost money and are entitled to compensation. The Club has discovered that most investors received nothing or absurdly small compensation offers.
BARCLAYS IS FINED BY THE FSA IN JANUARY 2011
After an epic battle by BIVC members including a lobby held in the House of Commons by 80 club members and supported by The Mail on Sunday and Moneymail Barclays grudgingly admitted liability. Our campaign – see Public protests for more details – also woke up the Financial Services Authority (FSA). In January 2011 – very late in the day – it produced a report on the mis-selling of these funds and fined Barclays £7.7 million.
At the time this was the biggest penalty ever imposed on a British bank by the FSA and it led to further investigations about other wrongly sold investment products. Barclays was ordered to investigate thousands of other cases, especially cases of PENSION MIS-SELLING.
The Barclays salesforce of advisers, who were all made redundant in January 2011, were encouraged in previous years to give customers what was often bad advice about their pensions. It was common practice to switch customers' pension policies into SIPPs. This meant that Barclays immediately began to receive commission and management fees for their customers' pensions without their client getting any benefit. And these switches could often cause huge losses. One BIVC member who ran a shop is Sussex had his pension investigated by Barclays' in-house team in 2011 and was given compensation of just over £11,000. In 2013 we re-opened an investigation of the advice he had received and he was awarded over £330,000 for losses caused by switching good pensions into a Standard Life SIPP.
For more information on bad pension advice click on our Pensions page.