View more on these topics

FSCS issues Sipp advice warning as pension claims surge 15%

The Financial Services Compensation Scheme has issued a warning over Sipp advice as the investor lifeboat fund reported a 15 per cent increase in life and pensions intermediation claims.

The FSCS’s annual report shows it received 4,248 claims relating to the the life and pensions intermediation class in 2013/14, up 15 per cent on the 3,691 claims received in 2012/13.

It upheld 45 per cent of life and pensions intermediation claims in 2013/14, compared to 50 per cent of claims the previous year.

The FSCS says the increase is down to a rise in Sipp claims and continuing, although relatively low, volumes of mortgage endowment claims.

FSCS chief executive Mark Neale says: “I am increasingly concerned by the growing number of claims FSCS has seen in the past year arising from wrong advice to consumers to move retirement saving out of occupational schemes and into risky assets held within Sipps.

“We strongly support the action the FCA has taken to address this.”

The FSCS received a total of 39,258 new claims from consumers during 2013/14, 37 per cent lower than the number of claims received in 2012/13, which it puts down to falling numbers of payment protection insurance claims.

Total compensation was £243m in 2013/14, down from £326m in 2012/13.

The FSCS says 44 per cent of claims are made through claims management companies. It says claims firms are most active in claims relating to mortgage endowments, PPI, mortgage intermediaries and stockbroking.

The FSCS received 7,823 investment intermediation claims in 2013/14, down 36 per cent on the 12,300 claims received in 2012/13.

It upheld 83 per cent of claims in 2013/14 in this sub-class, compared to 90 per cent of claims in 2012/13.



Chase de Vere sets aside £4m for Ucis redress

Chase de Vere has set aside £4.1m for redress relating to unregulated collective investment schemes, as it posts a pre-tax loss of £1.2m for 2013. This compares with a £11.2m pre-tax loss for 2012. In its 2013 accounts, published last week, Chase de Vere has set aside £3.3m for “exceptional items”. This includes a £4.1m […]


Meeting the FCA’s rules on costs disclosure

Earlier this year, the FCA published two papers that considered the results of the second round of its thematic review looking at RDR implementation. The review was based on information gathered from 113 firms from across the industry, with a follow-up assessment on a sample of them. Both papers highlighted failings.  The findings of the […]


Transact eyes further stakes in tech firms

Transact is considering taking more stakes in software companies after the platform acquired a 15 per cent interest in Sprint Enterprise. The deal, announced in May, saw the firm’s chief development officer Jonathan Gunby join the board of Sprint. Chief executive Ian Taylor says Transact is contemplating taking stakes in other software companies. He says: “If we […]


Network bulk insurance deal falters as Tenet pulls out

Tenet has withdrawn from talks on a proposed collective insurance deal to cover historical liabilities over concerns it could be forced to subsidise riskier networks, Money Marketing understands. In January, Money Marketing revealed a group of networks were in talks with insurance broker Marsh UK. It was hoped a deal could be agreed to insure on […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. So, once again we are being warned that those of us who are careful to ensure that our clients are given correct and appropriate advice, will have to reach into our pockets to compensate the clients of greedy fools and charlatans who couldn’t give a damn.

    As someone has already said, the dogs on the street knew that these schemes were rubbish. And where were the FSA/FCA while this was all happening?

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