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

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
Salary sacrifice protections overturned by House of Commons

Salary sacrifice protections overturned by House of Commons

Commons overturns Lords amendment to increase cap to £5,000 from initial £2,000 proposal

Holly Roach
clock 24 March 2026 • 1 min read
 Rachel Vahey: Advisers and clients still need clarity on NMPA increase

Rachel Vahey: Advisers and clients still need clarity on NMPA increase

'HMRC has had years to clear this up but has sat on its hands'

Rachel Vahey
clock 11 March 2026 • 4 min read