What's behind the spike in SIPP advice claims?

What's behind the spike in compensation claims handled by FSCS?

Laura Miller
clock • 7 min read

The life and pensions intermediation sector saw a 15% increase in FSCS claims in 2013-2014, driven mainly by a rise in complaints about SIPPs. So what's behind the spike? Laura Miller investigates...

Financial Services Compensation Scheme (FSCS) chief executive Mark Neale is "increasingly concerned" by the rising number of claims the service is receiving that are linked to "wrong advice" to move pensions out of occupational schemes into risky assets held in self-invested personal pensions (SIPPs). Life and pensions intermediation - which includes pension switching - generated 4,248 new claims for the year, compared to 3,691 in 2012-2013, a 15% increase that the FSCS said was driven mainly by SIPP-related claims. At the time of writing the FSCS was preparing a "general update on SI...

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