The FSCS has paid more than £125m in compensation to those who received unsuitable investment, pension and self-invested personal pension advice in 2025/26.
The lifeboat fund's annual report and accounts published today (2 July) revealed that the main drivers of compensation costs in 2025/26 included unsuitable advice relating to SIPPs, investments and defined benefit pensions transfers; failures of insurance firms from previous years; and SIPP operator failures. During 2025/26, the FSCS paid more than £125m in compensation to individuals who received unsuitable investment, pension and SIPP advice. It also paid around £35m in relation to SIPP operator failures and subsequent claims from affected clients. The remaining advice claims paymen...
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