View more on these topics

DB transfer compensation doubles in two years

Pension transfer compensation rose to £40m in 2018, new data from the Financial Services Compensation Scheme shows.

According to the Financial Times, payouts for mis-selling reached £37.5m in 2017 and £20m in 2016.

The report states that the increase in payouts in the past two years coincides with a seven-fold rise in transfer activity, from £3.4bn in 2014 to £37bn in 2017, according to the ONS.

The FSCS data was requested by Nick Smith, MP for Blaenau Gwent in south Wales, who told the FT the fact the payouts have doubled is “absolutely shocking”.

He adds: “Many people – including some of my constituents – ended up losing thousands of pounds of hard-earned money beause of the poor advice they were given.”

Scale of DB transfers by folded firms revealed

The FSCS said it was is currently unable to disclose details on the number of firms, or complaints, which underpin the £40m in payouts because the information must be manually retrieved.

Chief executive of the FSCS Mark Neale says: “We see many examples of mis-selling as both regulated, but also increasingly unregulated advisers, promote risky, illiquid investments.

“We see providers who fail to perform rudimentary due diligence on these investments.”



FCA launches investigation into mini-bond firm

The FCA has launched an investigation into mini-bond provider London Capital and Finance over concerns about the way it markets products. LCF has also been told to cease all regulated activity and may not deal in any way with its assets including the money held in its banks accounts. On 13 December the watchdog announced […]

Ponzi Scam Fraud Gavel Law 480

Ex-Credit Suisse bankers arrested on $2bn fraud charges

Three ex-Credit Suisse bankers have been arrested over alleged links to a fraudulent loan scheme involving state-backed companies in Mozambique, the BBC reports. The $2bn (£1.5bn) fraud scheme has also seen two others arrested, including Mozambique’s former finance minister, the broadcaster reports, as the former Credit Suisse trio remain released on bail in London pending […]


How to become a financial adviser: diplomas, degrees and workplaces

Information on how to become a financial adviser is sparse. Money Marketing speaks to advisers about what the requirements really are and how best to meet them. Speaking to financial advisers and planners today, each will have a unique and varied story about how they entered the profession. There are more than a handful of pathways […]

Phone - thumbnail

Pension Wise — now taking calls…

Those with decent-length memories will recall that in the 2014 Budget statement George Osborne announced the new (and entirely unexpected) pension freedoms. The new rules come fully into force in less than two weeks.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm