62% of SIPP complaints to FOS upheld

The Financial Ombudsman Service received 1,460 new complaints about SIPP products over the past year, according to its annual report on complaints. The number was included in an overall 20% rise in complaints of all types, with the FOS seeing nearly 200,000 complaints over the year, a fifth more. SIPP complaints had a higher than average uphold rate with 62% of the 755 decisions reached by the Ombudsman seeing a complaint upheld. On average, across all financial products, the Financial Ombudsman Service upheld 37% of the complaints it resolved, slightly higher than the 35% recorded in 2022/23. The FOS said increasing numbers of complaints were being brought by claims management companies and professional representatives. They accounted for 25% of cases in 2023/24 compared to 18% in the prior financial year. The Ombudsman said it had seen examples of good and bad practice from professional representatives. Some representatives had submitted mass claims without determining whether they have merit, while others failed to respond to requests for evidence, slowing down the Ombudsman’s investigations. Overall the Financial Ombudsman Service said in its 2023/24 year rose there were 198,798 new complaints compared with 165,149 the previous year. Abby Thomas, chief executive and chief Ombudsman, said that the indications so far were that the rise in case numbers was continuing into the new financial year. She said: “It’s always concerning when you see cases rise so significantly, particularly when so many people are struggling in the current economic climate.” Financial advisers saw 305 complaints made about their advice on investment portfolios between 1 April 2023 and 31 March 2024. However, of the 98 decisions reached by the Ombudsman, only 34% were upheld, below the average uphold rate. DB pension transfer advice continued to be common source of complaints. There were 344 new cases involving DB transfers to a SIPP between 1 April 2023 and 31 March 2024. The Ombudsman reached a decision in 174 cases, with 71% of complaints upheld. There were 703 new complaints registered with the Ombudsman regarding DB transfers (not to a SIPP) in the 2023/24 financial year. Of these 535 cases saw a decision and 67% of complaints were upheld. Fraud and scam cases rose by a fifth to their highest level, with 27,312 complaints in the 2023/24 financial year. Around half of these cases were authorised push payment (APP) scams where someone is tricked into sending money online to a fraudster posing as a genuine payee. In recent months, the Ombudsman has been consulting on a proposed case fee rise for professional representatives, aiming to make the fee model fairer and better reflect the costs. Under the proposals, professional representatives would be charged up to £250 to bring a case, reduced to £75 if the case outcome is determined in favour of the consumer.

62% of SIPP complaints to FOS upheld

Related items

News from Twitter