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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Regulation as a deal driver: How FCA scrutiny is reshaping wealth management consolidation

Regulation as a deal driver: How FCA scrutiny is reshaping wealth management consolidation

In wealth management M&A regulation has moved from footnote to headline

Louise Mahon
clock 27 April 2026 • 3 min read
Dropping annual advice reviews is 'watershed moment' – Keith Richards

Dropping annual advice reviews is 'watershed moment' – Keith Richards

Speaking at PA360 conference in London

Jenna Brown
clock 23 April 2026 • 3 min read
FCA: Consolidation has not reduced access to advice

FCA: Consolidation has not reduced access to advice

Advice sector stable but room for growth

Jenna Brown
clock 23 April 2026 • 2 min read