FSCS demands extra £24m levy due to rising SIPP claims

SIPP-related claims continue to grow

Jenna Towler
clock • 2 min read

The Financial Services Compensation Scheme (FSCS) has issued an additional £24m levy demand due to rising numbers of self-invested personal pensions (SIPP) claims.

In an update released this morning, the body said "the supplementary levy arises from continuing growth in volume of SIPP-related claims falling on life and pension advisers". In April, it forecast these would total £146m but because of uncertainly it only raised a levy of £100m (the maximum for the sector). However, latest calculations based on current volumes and average costs, showed the body needed to raise an additional £24m in 2017/18. It said the cost would trigger a cross-subsidy and "fall on the retail pool". Both advisers and providers across different funding classes wil...

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