FSCS 'expects' more IFA failures from SIPP investigations

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The Financial Services Compensation Scheme (FSCS) said it expects the number of advisory businesses declared in default as a result of its investigations into self-invested personal pension (SIPP) advice to rise above the current four.

The scheme said it is receiving increasing numbers of claims against independent advisers who are no longer trading, where advice was given to transfer existing pension schemes to SIPPs. In many cases the SIPP fund was then invested in non-standard asset classes, many of which have become illiquid. Four advisory businesses have so far been declared in default by the scheme following its investigations into SIPP claims, including Harlequin distributor TailorMade Independent, and it expects to begin processing claims against them in September. In an update issued on 29 July, the sche...

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