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...

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 Pensions

Why documentation is king in the world of SSAS

Why documentation is king in the world of SSAS

'SSAS documentation - it isn't just best practice or a fiduciary requirement'

Caitlin Southall
clock 04 July 2025 • 4 min read
Steve Webb: Sceptical advisers should not give up on pensions dashboard

Steve Webb: Sceptical advisers should not give up on pensions dashboard

‘A big mistake to underestimate the impact it will have’

Jenna Brown
clock 03 July 2025 • 3 min read
What role can advisers play in closing the gender pension gap?

What role can advisers play in closing the gender pension gap?

Advisers are uniquely placed to influence the gender pension gap

Olivia Perry
clock 02 July 2025 • 7 min read