FSCS pays out £112m for SIPP-related claims
In 2017/18, it’s been reported that The Financial Services Compensation Scheme (FSCS) has paid out £112m in compensation for self-invested personal pensions (SIPPs), an increase of 7 per cent from last year’s £105m.
According to the report, in the vast majority of these claims the customers invested in high-risk, non-standard asset classes within SIPPs, “many of which become illiquid and potentially insolvent”.
The FSCS chief executive Mark Neale reported that 22 per cent of the claims handled arose from pension advice “most commonly to transfer retirement savings out of an occupational scheme into a Sipp with a view to making illiquid and risky investments”. The organisation said it was expecting “a notable increase” in claim volumes in the coming year due to these cases.
From the 6,360 new claims in 2017/18, 5,800 were upheld, with an average amount paid out of £26,793.
In January, the FSCS declared Sipp firms Brooklands Trustees, Stadia Trustees and Montpelier Pension Administration Services are in default, when it also announced it would compensate investors in relation to at least 150 claims.
If you believe you’re due compensation for a mis-sold pension, get in touch today – email firstname.lastname@example.org