FOS Sipp claims still on increase, latest data reveals

Caroline Wayman FOSThe Financial Ombudsman Service upheld half of Sipp-related cases as number ticked up again between July and September, new data shows.

The FOS published its second quarter complaints data today which shows it received 435 Sipp enquiries between July and September which was a slight increase on the 427 enquiries it received between April and June.

Of the 435 Sipp enquiries received, it took on 321 new cases and 95 of those were passed to an ombudsman.

The FOS received 922 enquiries about personal pensions in Q2 and took on 532 new cases with 92 passed to an ombudsman, which is the final stage of the complaints process. The FOS upheld 26 per cent of cases in this category during the three-month period.

The FOS received 36 enquiries about income drawdown in Q2 and upheld 53 per cent of those it took on as cases. This was an increase on the 35 per cent uphold rate in the first quarter.

Elsewhere, the FOS had 162 people contact it about annuities in Q2 with a 27 per cent uphold rate for complaints taken on as cases. In Q1, the FOS had 144 consumers contacting it with complaints about annuities, however, the watchdog only upheld 13 per cent of these claims.

In a newsletter about the complaints data, chief ombudsman Caroline Wayman focuses on financial technology, saying the FOS has received relatively few complaints around peer-to-peer lending compared to the amount of interest these investments generate.

Wayman says: “While peer-to-peer loans and investments have existed
 for years, they’re a good example of activities that new technologies have facilitated and changed. Compared with the recent level of interest around these types of lending and investments, we’ve received relatively few complaints. That’s of course encouraging – as are suggestions that the UK is seen as best place in the world to run a fintech business.”

However, the FOS says, overall, it has seen relatively more complaints about loan-based crowdfunding than investment-based crowdfunding.