The £405m the FSCS paid out in compensation during the 2017/18 financial year - up from £375m in 2016/17 - included a significant increase in pension advice-related claims.
According to the latest Financial Services Compensation Scheme (FSCS) annual report, almost a quarter (22%) of the claims handled by the lifeboat fund in its 2017/18 financial year arose from pensions advice. The last financial year saw more than a fivefold increase in costs relating to pension transfer claims - rising from £8m in 2016/17 to £43m this year. That figure included the cost of claims made against advisers who gave negligent advice to transfer pensions out of defined benefit schemes into unsuitable assets. Self-invested personal pension (SIPP) related claims also increased...
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