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

From A-day to IHT: How government forgot the meaning of 'consultation'

From A-day to IHT: How government forgot the meaning of 'consultation'

'What is particularly galling is that there were viable alternatives'

Rachel Vahey
clock 14 April 2026 • 3 min read
Government confirms amendment to Pension Schemes Bill mandation clause

Government confirms amendment to Pension Schemes Bill mandation clause

Government will not require DC schemes to invest more than 10% of total assets

Holly Roach
clock 13 April 2026 • 3 min read
Case study: The hidden risk of a single member SSAS without a professional trustee

Case study: The hidden risk of a single member SSAS without a professional trustee

The problem, the solution, lessons learned

Caitlin Southall
clock 30 March 2026 • 4 min read