The average compensation payout for a SIPP-related claim against failed IFAs rose almost 50% in 2014-15 against the previous 12 months, prompting a £20m interim levy on life and pensions advisers.
The Financial Services Compensation Scheme (FSCS) said the average payment climbed from about £11,100 in 2013-14 to almost £16,400 in the following year. The increase in the average value of a successful claim, as well as a rise in the number of claims, led the FSCS to issue a £20m interim levy for life and pensions intermediaries in March this year. At the time, the FSCS said the additional levy - issued when claims breach the scheme's earlier estimates and fundraising - were as a result of the rising "costs and volume" of SIPP-related claims, but it had not disclosed the extent of t...
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