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

FCA to cut red tape for investment firms in bid to streamline regulation

FCA to cut red tape for investment firms in bid to streamline regulation

Volume of legal text cut by 70%

Linus Uhlig
clock 24 April 2025 • 2 min read
Zero cases of non-financial misconduct opened by FCA in two years

Zero cases of non-financial misconduct opened by FCA in two years

A Freedom of Information request has found

Cristian Angeloni
clock 22 April 2025 • 3 min read
Emma Reynolds: Targeted support is 'exciting opportunity' but 'we need to get it right'

Emma Reynolds: Targeted support is 'exciting opportunity' but 'we need to get it right'

‘Need strong consumer protection in place’

Jenna Brown
clock 22 April 2025 • 3 min read