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Personal Equity Plan (PEP) Mis-selling Compensation

Many Personal Equity Plans (PEPs) were mis-sold as the risk, fees and tax limitations were misrepresented.

We can help you get your money back.

Make a mis-sold PEP claim with KP Law

Did you buy a Personal Equity Plan (PEP) on the advice of a UK bank or financial advisor? Many people did, but subsequently lost large sums of money. If this has happened to you, we can help you make a mis-selling claim.  

Introduced in 1986, PEPs allowed UK citizens aged 18 and over to invest in the stock market without having to pay income tax or capital gains tax. PEP investments were made through plan managers, who were responsible for their administration. Many plans required a minimum amount to be invested. 

PEPs were very popular, but many financial advisors did not explain that they were also a high-risk product. As such, they were not suitable for everyone. Similarly, the tax benefits of PEPs were often exaggerated and the fees not fully explained.  

Banks and other financial advisors have a legal duty to ensure that investors fully understand the products being sold to them, and to make sure that these investments meet their needs and circumstances. By not informing customers that PEPs were extremely risky, and by mis-representing the fees and tax limitations, many financial advisors mis-sold these products.  

PEPs were replaced by Individual Savings Accounts in 1999 and then began to be phased out. By 2008, all remaining PEPs became ISAs. 

In recent years, an increasing number of people have complained about the way PEPs were sold, with many investors losing huge sums of money. If this has happened to you, you might have a mis-selling compensation claim. 

We help people in England & Wales claim back what they are due following PEP and other financial mis-selling. We can even help you get your money back if the negligent bank or adviser has gone out of business.  

Making a personal equity plan mis-selling claim with us is straightforward. It is free to sign up, and we act on a no-win, no-fee basis.  

If you believe your PEP was mis-sold, contact us to find out how we can help. If you are unsure if you have a claim, we can find this out for you.  


If you have been a victim of PEP mis-selling, we can help you make a no-win, no-fee claim for compensation. 

Contact us today for a free, no-obligation assessment of your case. 

Do you have a PEP mis-selling claim?

You might be the victim of personal equity plan mis-selling if a bank or financial advisor convinced you to purchase a PEP and:   

If this applies to you, contact us to discuss a potential claim.  

We are unable to help if you have already made a claim for the same product with the FSCS or FOS, even if this claim was unsuccessful. 

Cases we handle at KP Law

Our Investment Fraud & Mis-selling lawyers deal with a wide range of PEP mis-selling cases every day. Here are just some examples of the type of cases we can help with… 

Donna’s* PEP mis-selling case

Donna invested in a PEP at a time when the stock market was performing well. But her financial advisor did not explain what might happen should that change. Donna is a naturally cautious person and she would not have invested in the PEP if she had known the risk. She has subsequently lost money because of the investment. We are helping Donna to claim compensation as she was not given adequate financial advice. 

Alison’s* PEP mis-selling case

Alison sought a UK-regulated financial adviser to ensure she received high-quality financial advice when deciding how to invest her savings. The UK-regulated advisor recommended a PEP that gave him a fee for each plan purchased. However, the PEP recommended came with a very high annual fee. This has drastically reduced the returns Alison received. As the advisor did not make this clear, or explain that the fee was higher than the industry norm, we are helping Alison to claim compensation for mis-selling. 

Muhammad ’s* PEP mis-selling case

Muhammad took out a PEP on the advice of his bank. However, Muhammad was not told that the income from the PEP was tax-free, only as long as the invested funds remained in the plan. He was also not informed that withdrawing funds before five years had passed would likely negate any gains made. By not making the terms of the PEP clear, we believe that the financial advisor mis-sold the plan and we are helping Muhammad claim back the money he invested. 

*Names have been changed to protect client confidentiality. 

PEP Mis-selling Group Action Claims

Where multiple people have received negligent or fraudulent financial advice from the same professional advisor/company, we can help them to recover their losses collectively. Group actions can be a powerful tool and can have a bigger impact than a single claim. 



PEP Mis-Selling FAQS

Here are some of the questions our clients have asked our expert lawyers about making a Personal Equity Plan mis-selling claim.  

  • What makes a PEP mis-sold?

    You might be the victim of PEP mis-selling if: 

    • The level of risk was not made clear to you  
    • You were not asked about your attitude to risk  
    • Your circumstances and needs were not taken into account by the advisor selling the product  
    • The fees were not made clear to you 
    • You were not told about the disadvantages of a PEP 
    • The tax benefits of the PEP were misrepresented. 

  • I think I was mis-sold, but the provider or adviser has gone out of business. Can I make a claim?

    Yes, if a bank, financial advisor or provider advised you to invest in an unsuitable scheme and they have since gone out of business, you may have a claim. The Financial Services Compensation Scheme (FSCS) protects consumers when financial firms fail. If a UK-regulated adviser has given bad advice concerning an investment product, and the provider or advisor has since gone out of business, the FSCS may pay compensation up to £85,000.  

  • I think my financial advisor was negligent. Do I have a claim?

    To make a professional negligence claim, you need to demonstrate that you were owed a duty of care, that the professional involved breached this duty, and that this breach caused you to suffer a loss. This can be hard to prove, as a professional is not expected to be right 100% of the time. To win your case, you must show that another experienced professional in the same field would have given different advice, or that the professional failed to follow recognised good practice. We have a history of effectively handling these types of cases and can help you make a successful claim. 

  • What are the potential consequences of PEP mis-selling?

    As a result of PEP mis-selling, victims might have: 

    • Lost thousands of pounds. 
    • Been hit with high fees and charges. 
    • Suffered emotional stress and harm. 


  • Where does the compensation come from?

    There are two main funds available to help victims of PEP mis-selling: 

    • If a financial advisor/provider advised you to invest in an unsuitable scheme and the provider or adviser has since gone out of business, you may have a claim with the Financial Services Compensation Scheme (FSCS). 
    • If a financial advisor/provider advised you to invest in an unsuitable scheme that has not gone out of business, you may be eligible for compensation via the Financial Ombudsman Service (FOS). 


    We can help you to make a successful claim to the relevant fund.  

  • Do I need a lawyer to claim compensation for a mis-sold PEP?

    You can make a mis-soldPEPclaimwithout a lawyer. But, while a DIY mis-selling claim could save you solicitor’s fees, in the end, and even if you win, you might walk away with less compensation. This is often due to a lack of understanding over the law/procedures, which can put individuals at a disadvantage when up against savvy (and sometimes aggressive) defence lawyers. And, of course, if you lose your case, you will likely have to pay the other side’s costs. Because we offer no-win, no-fee funding arrangements, you benefit from expert legal support without worrying about costs 

  • How much will I have to pay if I make a claim?

    You will only have to pay anything if you win. You will not have to pay anything upfront. Any payment would only come out of the money that we recover on your behalf. We will conduct the claim for you under a no-win, no-fee agreement. If you win, our fees will be deducted from your damages.  

  • How much compensation could I get?

    Each case is different, but many of those affected could be owed many thousands of pounds. 

  • Can I make a mis-selling claim?

    Contact us to discuss your case. Signing up is straightforward and costs you nothing as we act on a no win-no fee basis. 


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