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FOS reports drop in complaints but Sipp cases surge

The Financial Ombudsman Service has reported a 46 per cent drop in year-on-year complaints between April and June, from 159,197 in 2013 to 85,184 in 2014, following a substantial drop-off in PPI cases.

FOS data for the three-month period, published today, shows PPI complaints fell 57 per cent, from 132,152 in 2013 to 56,869 this year. The proportion of complaints upheld has also dropped significantly, from 78 per cent to 61 per cent.

Sipp complaints, however, have surged 83 per cent during the period, from 132 between April and June 2013 to 241 this year. This comes after the FCA warned of “widespread failings” in the sector following its third thematic review of Sipp operators.

Annuities complaints also increased markedly, from 120 to 189, although less than a fifth of the 2014 cases were upheld. Complaints relating to personal pensions remained flat year-on-year.

Occupational pension transfer complaints rose from 83 to 98, with almost half of the cases brought to the FOS between April and June this year resolved in favour of the consumer.

The FOS received 3,007 mortgage complaints, up marginally on the 2,941 recorded during the three-month period last year.

Complaints about term assurance, income protection, critical illness and whole of life policies were all down, while complaints about payday lenders rose from 155 to 189.


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. For ‘widespread failings’ read ‘fraudulent activities and theft’ from vulnerable older people. The ‘independent financial advisers’ who perpetrated these criminal acts are still in business. Potential clients in the Manchester area should take particular care especially if the person looking for your business drives a top of the range BMW.

  2. Whilst pretty much all complaints involve somebody being under stress and we mustn’t dismiss them lightly, I couldn’t help think to my self, how do these complaint numbers compare with the number of such products in existence?

    241 SIPP complaints, how many SIPPs are there 100,000? (or even more) is it really a “surge”?

    189 annuity complaints and yet the “free impartial guidance guarantee” is being debated because 300,000 people a year or more are buying annuities.

    I wonder might we at least try to put some emphasis on the positive?

    Surely we need some perspective on these numbers?

  3. Dick Sprinkler 22nd July 2014 at 3:04 pm



    Have you never heard the ‘sledgehammer to crack a nut’ terms used by many when discussing FOS, FCA, FSCS, MAS, RDR, MMR ‘quangoism’ and statutory regulation in general – some of us having been saying it for years !

    When you think about the budgets involved in running these more often than not needless wastes of time you start to wonder what sort of industry we would have if those same budgets were ‘re-directed’ !!!

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