Rising SIPP and DB transfer claims to force extra £69m FSCS levy

£31m in SIPP claims expected

Hannah Godfrey
clock • 2 min read

The Financial Services Compensation Scheme (FSCS) has forecast an additional levy of £69m due to rising SIPP and defined benefit (DB) transfer claims.

In its November outlook, published on Wednesday (November 28), FSCS chief executive Mark Neale revealed the lifeboat fund expected to be in a deficit of close to £70m by the end of the year as a result of pension-related claims. Neale (pictured) said: "Despite raising a levy on life and pensions advisers in April of £75m - the maximum allowable for nine months from June 2018 to March 2019 - we expect a deficit by year-end of just under £70m. This will, I am afraid, necessitate a supplementary levy falling on the retail pool." He added: "We see some common factors underlying these clai...

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