SIPP claims 'significant' as pension levy breaches limit, says FSCS

Levies £87m for life and pensions class

Tom Ellis
clock • 1 min read

The industry lifeboat said it "continues to receive significant numbers" of post-DB transfer self-invested personal pension (SIPP) claims against financial advisers as the levy once again breaches the funding class limit.

The Financial Services Compensation Scheme's (FSCS) forecast levy for the life and pensions intermediary funding class is £87m for 2018/19. This exceeds the £75m class limit, which is 25% smaller than the usual £100m because of the shortened, nine-month levy year, by £12m. The body is shifting its financial years, meaning forecasts for 2018/19 reflect a nine-month period. Last year the FSCS forecasted £171m for the life and pensions intermediary funding class, which was still much greater than this year's forecast when taking into account the shortened levy year for 2018/19. Highli...

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