Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

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.'

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Kames' Ennett: Trump good for US high yield, but beware Europe

Kames' Ennett: Trump good for US high yield, but beware Europe

Kames Capital’s head of high yield David Ennett believes the changing political landscape will be a positive for the US, but negative for Europe in 2017.

Play Philip Milburn: why inflation won't run out of control

Philip Milburn: why inflation won't run out of control

Kames bond fund manager views inflation as more of 'scare' than a 'problem' and is positioning his portfolios accordingly.

Play Henderson's Lofthouse on merger boost and political risk

Henderson's Lofthouse on merger boost and political risk

Ben Lofthouse talks through where he is finding income and what surprises await the global economy in the new year.

Read More
Your Business: Cover Star Club

Profile: why Patronus Partners' founder left the only job he ever knew

Profile: why Patronus Partners' founder left the only job he ever knew

'There was a definite idea of how things would work out over 12 months. When we look back, that was inaccurate'

Wealth Manager on Twitter