FSCS levy set at £287m as SIPPs turn sour

Laura Miller
clock

The Financial Services Compensation Scheme (FSCS) plans to collect a levy of £287m from firms in 2015-16, as it prepares for a rise in claims related to self-invested personal pensions (SIPPs).

The levy covers compensation and management expenses, excluding the costs of the major bank failures of 2008/09. It compares with total levies so far in 2014-15 of £276m. The FSCS said it expected a reduction in the overall volumes of new claims in 2015-16, down to 25,590 compared to 28,108 in 2014-15, with the number of claims for PPI and mortgage endowments expected to fall. But the FSCS is preparing for a significant rise in compensation costs arising from advice to transfer pension savings into SIPPs. The scheme said it expects new claims against investment intermediaries to r...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

New regulations and challenges in the EU and UK: What are advisers' next moves?

New regulations and challenges in the EU and UK: What are advisers' next moves?

Regulatory simplification vs expanding oversight

Bernadine Reese
clock 16 July 2026 • 4 min read
FCA investigates 11 potential Consumer Duty breaches including small IFA

FCA investigates 11 potential Consumer Duty breaches including small IFA

Publishes good practice review

Michael Nelson
clock 13 July 2026 • 4 min read
Advertising watchdog censures whisky cask and gold investment firm

Advertising watchdog censures whisky cask and gold investment firm

ASA upholds four complaints against Cap Group

Isabel Baxter
clock 08 July 2026 • 3 min read