Scheme · Unregulated Investment

GMTC SIPP Claims — Transfer Mis-selling & Compensation

Numerous individuals were advised to transfer existing pensions into SIPPs in order to invest in GMTC and related schemes — trading company investments that proved unsuitable for pension savers. If you transferred on this basis, you may have grounds for a complaint against the adviser or SIPP operator involved.

FSMA s.27 — contracts via unauthorised introducers may be voidable
£85k FSCS cap per eligible person per firm (investment advice)
£455k FOS award limit (post-April 2019 advice)
Route 4 Civil litigation — uncapped recovery for large losses
Background

GMTC and SIPP-Based Investment Schemes

GMTC is among a category of trading company and commodity-linked investment schemes that were marketed to pension savers through unregulated pension introducers. Investors were typically cold-called or approached through a 'free pension review', then recommended to transfer their existing workplace or personal pension into a self-invested personal pension (SIPP), which was then used to invest in the scheme.

The investments were typically unregulated collective investment schemes (UCIS) or loan notes linked to commodity trading activities. They were not regulated by the FCA and fell outside the scope of the FSCS's investment protection for the underlying asset — though claims against the regulated SIPP operator or IFA who facilitated the transfer may still be available.

SIPP operators who accepted such schemes into their products without adequate due diligence may now face claims under the regulatory framework established by the Court of Appeal in Fletcher [2024], which confirmed operator-level liability where a SIPP operator failed to conduct proper due diligence on the assets it permitted within its product.

Your Options

Four Routes to Redress

Depending on the firm's current regulatory status and the nature of your loss, one or more routes may apply to your case.

Route 1

Direct Firm Complaint

If an FCA-regulated adviser recommended the SIPP or the underlying GMTC investment and that firm is still trading, complain directly under DISP. The firm has eight weeks to respond and must conduct a suitability assessment.

Live adviser firms
Route 2

Financial Ombudsman Service

Where a live adviser rejects your complaint, escalate to FOS. FOS will consider whether the recommendation of the SIPP or the underlying investment was suitable for your individual circumstances, risk profile, and investment objectives.

Against regulated adviser
Route 3

FSCS Compensation

If the IFA or SIPP operator has failed and been declared in default by the FSCS, you can apply for compensation up to £85,000 per eligible person per firm. Check the FCA Register and FSCS website to identify whether any firm in your advice chain has failed.

If firm in default
Route 4

Civil Litigation

Civil litigation against the SIPP operator and, where applicable, regulated parties in the advice chain can pursue uncapped compensation. Under FSMA s.27, contracts entered through unauthorised introducers may be voidable, enabling full restitution beyond FSCS caps.

Uncapped — no FSCS limit
Legal Precedent

The Regulatory & Legal Framework

Common Questions

Frequently Asked Questions

The company running the GMTC scheme has collapsed — does that mean I cannot claim?
Not at all. Your claim is against the FCA-regulated parties in your advice chain — specifically the IFA or financial adviser who recommended the transfer, and the SIPP operator who accepted the investment. You cannot generally claim against an unregulated introducer or the unregulated investment vehicle itself.
I was cold-called and told it was a 'free pension review'. Does that help my claim?
Yes. Cold calling in relation to pension transfers has been banned by the FCA since January 2019. Evidence that you were contacted via an unsolicited approach strengthens the argument that the introduction was improper and supports both FSMA s.27 arguments and the general claim of unsuitable advice.
Can I claim if I invested only part of my SIPP in the GMTC scheme?
Yes. A partial investment does not prevent a claim. The claim relates to the proportion of your pension invested in the unsuitable asset, and the loss calculation will reflect the actual loss on that portion.
Is there a FSCS claim available specifically against the SIPP operator?
If the SIPP operator has been declared in default by the FSCS, a claim against the operator may be available under the FSCS investment provision class. Where the adviser has also failed, separate FSCS claims against both parties may be possible, though anti-duplication rules apply.
Act Before Time Runs Out

Time Limits on Your Claim

Pension mis-selling claims are subject to strict time limits under DISP, the Limitation Act 1980, and FSCS rules. Missing a deadline can bar you from compensation permanently.

⚠ Key Deadlines

Pension mis-selling claims are subject to DISP time limits (six years from the date of advice, or three years from discovery, whichever is later) and Limitation Act 1980 provisions for court proceedings. FSCS eligibility windows also apply. In cases involving complex, multi-party chains, early specialist assessment is strongly recommended. See redressadvisory.com/time-limits for full guidance.

View our full time limits guide →

Find Out If You Have a Claim

Redress Advisory will assess your case, identify the appropriate route, and manage the process through our regulated solicitor partner panel — at no upfront cost.

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Regulatory Notice & FCA Self-Service Disclaimer

You do not need to use a claims management company to pursue a pension mis-selling complaint. You can complain directly to the financial firm, escalate to the Financial Ombudsman Service (FOS), apply to the Financial Services Compensation Scheme (FSCS), or instruct a solicitor independently — all free of charge. Using Redress Advisory does not improve the likelihood of success compared to pursuing a claim yourself, and our fee will reduce any compensation you receive.

Redress Advisory Ltd (Company No. 17295681) is a claims management company. Regulated legal work is carried out by our Operating SRA Partner solicitor firms. We are not a firm of solicitors and we do not provide legal advice.

The information on this page is for general informational purposes only. It does not constitute financial, legal, or claims management advice. Individual outcomes depend on the specific facts of each case. Historical outcomes in related cases are not a guarantee of results in your case.

FOS: 0800 023 4567  |  FSCS: 0800 678 1100  |  FCA Register: register.fca.org.uk