Citywire publishes FSCS 2018 roundup, including SIPP collapses & more

Financial news publication, Citywire, has published an article chronicling the FSCS’s 2018 story, including focuses on the SIPP pension mis-selling scandal and the final salary pension transfer problem. What is the FSCS? The Financial Services Compensation Scheme is the lifeboat fund for the financial services industry in the UK. Different to the FCA (which makes…

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FCA action: 9 financial advice firms told to stop or limit pension transfers over concerns

The Financial Conduct Authority has told as many as 9 financial advisers that they can no-longer give advice to transfer financial salary pensions and other defined benefits, or in some cases to limit this activity. The FCA is the financial services regulator, and sets the standards for conduct across the industry for things like pension…

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Regulator takes steps to stop pension mis-sellers and scammers from coming back to the industry

The FCA has launched a training program designed to help staff stop individuals and companies considered to be ‘harmful’ from starting up their old tricks again. Many people in the financial services industry are concerned with how some firms appear to have given negligent financial advice ‘en masse’ and then placed their company into liquidation…

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£17 million compensation bill for just 3 collapsed SIPP companies

The collapse of 3 SIPP pension providers, Brooklands Trustees, Montpelier Pension Administration Services and Stadia Trustees, has so far cost the FSCS £17 million in compensation. Because the three firms stopped trading and disintegrated, it meant that the FSCS had to step in, declaring the firms in default, which meant that it would consider paying…

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3000 financial firms to be quizzed over pension transfer risks

The Financial Conduct Authority, which both sets and enforces the rules for companies working in the financial services sector, is set to question around 3,000 firms about pension transfer risks, following suspicious surges in transfer activity over the past few years. In many cases, people may have been given negligent financial advice that led them…

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FSCS may have to levy another £69m to pay for pension mis-selling compensation

The Financial Services Compensation Scheme is forecasting an extra £69 million levy to pay for pension mis-selling compensation, as claims about SIPP pensions and final salary pension transfers appear to rise. As the ‘lifeboat’ scheme for the financial services sector, the FSCS is often responsible for paying claims when companies can’t either because they cannot…

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Number of pension transfers shoot-up 587% in just 2 years despite warnings

Have you moved a defined benefit pension? Final salary pensions are some of the most rare and valuable pensions around, promising a guaranteed income in retirement, with some excellent benefits and security. But despite this, it appears people are leaving them in the thousands, as the FCA reports a massive 587% increase in pension transfers…

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1,400 claims against Beaufort Securities land with FSCS

The Financial Services Compensation Scheme, which acts as a lifeboat to pay claims when firms cannot, has received over 1,400 mis-selling claims relating to the Beaufort Securities scandal. Beaufort, which entered into administration back in March shortly after it was revealed that parties relating to Beaufort were caught up in an FBI sting, provided discretionary…

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FCA demands information from DB pension transfer advisers

The FCA has written out to financial advisers who have permissions to conduct final salary pension transfers to demand information about the ongoing costs of the new pension arrangements being paid by their clients. Final Salary pension transfers are rarely considered suitable under the FCA’s rules, because of the amount of risk moving away from…

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