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 advice to move pensions into risky assets held in self invested personal pensions (SIPPS).
The life and pensions intermediation sector saw a 15% increase in FSCS claims in 2013-2014. The scheme said this was because of an increase in SIPP claims and the continuing, although relatively low, volumes of mortgage endowment claims. Life and pensions intermediation generated 4,248 new claims for the year, compared to 3,691 in 2012-2013, with an uphold rate of 44.8% compared to 49.6% in the previous 12 months. The average claim amount paid was £11,104 compared to £13,172 in 2012/13. Total claims for the sector amounted to £18.7m down from 24.3m in 2012/13. Neale said of the fig...
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