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FSCS issues Sipp warning as payouts fall 25% to £243m

FSCS issues Sipp warning as payouts fall 25% to £243m

The Financial Services Compensation Scheme (FSCS) paid out £243 million last year.

The figure, revealed in its annual report and accounts, represented an £83 million decrease on the previous year.

The £10 million rise in compensation in the general insurance sector was offset by a fall in the investment intermediation sector from £105 million to £71 million. This fall was due to declining PPI claims. 

The body received 39,258 claims over the year and it said why PPI claims appeared to have peaked, there was steady rise in more 'complex' claims. It expects this to be a continued feature for the foreseeable future.

Life and pensions was one are which saw an increase in claims, largely due to a rise in Sipp claims.

FSCS chief executive Mark Neal said:  I am [also] 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 Self- Invested Personal Pensions.

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

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