FSAVC Mis-selling

Were you a victim?

Expert help and support from Greg Vaughan Financial Services: the pensions claims specialist

FSAVC mis-selling: did it happen to you?

FSAVC policies are very similar to standard personal pensions. You pay your contributions into an investment fund and the final pension is determined by the performance of the assets in the fund (usually company shares). However…

FSAVC policies had 2 major flaws:

  1. Policy charges were high in order to pay the salesman’s commission and to cover the costs of administration and provide a profit to the insurer or bank running the policy. The more taken out of the fund in charges, the less will be available for investment.
  2. The investment performance of FSAVCs has often been very poor. FSAVCs were sold on the back of illustrations showing investment growth between 8.5% and 13% a year. None have got anywhere close to these returns. In reality, many FSAVCs will not even return the premiums invested.

Most people were not made aware of these flaws and, worse, were not told about much better alternative options available from their employer’s own pension scheme. This represents mis-selling.

Benefits of a company scheme AVC

Paying your additional voluntary contributions (AVCs) into your employer’s pension scheme had 2 major benefits.

Firstly, the costs were substantially lower than on FSAVC policies. Thus more money was available to build up the extra retirement benefits. Company schemes would usually subsidise the costs of administration; plus, no salesman’s commission was payable.

Secondly, members of public sector pension scheme were able to buy extra years of service (so called “added years”). The pensions of public sector professionals such as teachers, doctors and dentists are based on a proportion of the person’s final salary at retirement. The exact proportion is determined by length of service.

Buying “added years” of service guarantees higher benefits, because they are not subject to risky investment performance and thus tend to provide much higher levels of retirement income than FSAVC policies.

Frequently asked questions about FSAVC mis-selling

Greg has written extensively about FSAVC mis-selling on the Blog page. Please visit to read much more about this hidden scandal. 

Worried about having been mis-sold an FSAVC?

If mis-selling happened, Greg can help you get the compensation that you deserve. With over 2 decades of experience, Greg has won millions of pounds in compensation for thousands of happy clients, with life-changing amounts up to and beyond £90,000 in some cases. Greg has the highest customer satisfaction rating on Trustpilot and you can read client reviews here.

Please follow this link to view the highest and average claims against some of the most common FSAVC providers

If you have any concerns about having been mis-sold an FSAVC, please get in touch with Greg using the contact form.

If you are still unsure if you have been mis-sold, please take the “FSAVC 60 second Mis-selling Test” below.

FSAVC "60 second" Mis-selling Test

Question 1 of 6

At the time of sale, did the financial adviser tell you that your company scheme would also let you pay in additional voluntary contributions (AVCs)?

Question 2 of 6

Did the financial adviser discuss the differences between FSAVCs and AVCs?

Question 3 of 6

Did the financial adviser recommend that you approach the administrator of your company scheme to get more information about AVCs before you made a decision to pay FSAVCs?

Question 4 of 6

Did the adviser discuss the differences in charges between an FSAVC and in-house AVC?

Question 5 of 6

Did the adviser discuss the differences in the choice of investment funds under an FSAVC and in-house AVC?

Question 6 of 6

Did the financial adviser compare illustrations for the FSAVC and AVC to see which would provide the higher pension?

You have completed the FSAVC Mis-selling check.

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Find out if you have been mis-sold. Download our simple FSAVC checklist.

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Contact Greg Vaughan Financial Services

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