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FOS Sipp complaints almost double in 12 months

The number of new complaints to the Financial Ombudsman Service concerning Sipps has nearly doubled in the last year, latest data shows.

FOS stats released this morning show the adjudicator handled 521 new Sipp cases between April and June 2017. This has now risen to 922 for the same period in 2018.

In total, the FOS received 678 enquiries around Sipp complaints, rising to 1,107 for the three months to June this year.

While the number of cases making it to an ombudsman decision, as opposed to being settled at an early stage, dropped from 181 to 137, the uphold rate in favour of the consumer has increased from 50 per cent to 59 per cent for the latest quarter.

Looking under the bonnet of the Sipp market

Sipps complaints had the highest uphold rates of any product assessed by the FOS in the latest data.

On average, 35 per cent of complaints went in favour of the consumer between April and June 2018.

Complaints regarding non-Sipp personal pensions remained stable, with only a slight increase from 460 new cases to 464.

While investment Isa complaints did increase from 266 to 418, and cash Isa complaints rose from 133 to 172, there continued to be a fall in annuity complaints, from 227 to 148, and only 19 per cent of those were upheld.

Payment protection insurance and payday loans continued to dominate the FOS’ workload, with 55,000 and 11,000 new cases respectively, accounting for a combined 75 per cent of all new complaints.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. It would be interesting to know:-

    1. how many of these referrals are from CMC’s,

    2. how many of them are ultimately rejected/upheld,

    3. how many complaints not involving a CMC are rejected/upheld and

    4. the basis of these complaints, notably how many arise from advice to invest in UCIS and/or other unsuitably high risk media.

  2. Not surprising when a Bunch of the companies that set these dodgy Sipps up have now opened claims companies to reclaim the money for the people they defrauded in the first place. Charging 30% tondo so. In turn taking money of the clients for the 2nd time.
    I’ve made the FCA aware of this multiple times but nothing is done. A bit like the multiple times they were informed of the scams in the first place.

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