The Financial Services Compensation Scheme (FSCS) has predicted an increase over the next year in the number of claims it handles relating to allegedly negligent pension scheme transfer advice.
The FSCS Plan and Budget report for 2017 suggests that throughout 2017/18 there will be increased numbers of claims in relation to advice given to transfer funds from existing pension schemes to SIPPs. The majority of these claims concern advice to invest funds in high risk, non-standard asset classes which are viewed as being unsuitable for the majority of investors.
The FSCS may consider raising additional levies on the industry later in the year when better information is available regarding full-year compensation costs.
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