SIPP non-standard investment advice costs FSCS £112m in 2017/18

Paid out an average £26,000 per claim

Tom Ellis
clock • 1 min read

Advised clients investing in non-standard assets in SIPPs has cost the Financial Services Compensation Scheme (FSCS) more than £100m in 2017/18.

The lifeboat fund has now had to pay out more than £100m in relation to self-invested personal pension (SIPP) pension transfer advice for the second year in a row, paying out £105m in 2016/17 and £112m in 2017/18. The FSCS said: "We continued to receive claims in relation to advice given by independent financial advisers to customers to transfer existing pension arrangements into SIPPs. "In the vast majority of these claims the customers invested in high-risk, non-standard asset classes within SIPPs, many of which become illiquid and potentially insolvent." It added: "For those cus...

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