The Financial Ombudsman Service (FOS) is often considered the last line of defence for financial claimants that cannot settle complaints directly with their service or product provider. In the case of self-invested personal pensions (SIPPs), these are typically pension providers or independent financial advisers (IFAs) that sold or promoted regulated investments that failed to perform at their marketed rates of return. Due to the often-dramatic circumstances of the pension compensation sector, SIPP complaints are often associated with the Financial Services Compensation Scheme (FSCS). However, the FOS is currently more active than ever following an influx of SIPP complaints.
New statistics released by the FOS show a significant increase in SIPP complaints amounting to roughly double the amount registered during the same period last year. Between April and June 2017, the Ombudsmen adjudicated 521 SIPP complaints. This figure has risen to 922 SIPP complaints for the second quarter of 2018.
SIPP Complaints: FOS Uphold Rates
It is often in the financial interest of the product or service provider to reject claims from customers. In these instances, the claimant can escalate their SIPP complaint to the FOS. A professional ombudsman will then mediate the claim and assess its veracity from an independent point of view. An organisation can reject the findings of an FOS review, but this is uncommon and usually costly for the product or service provider.
The FOS can suggest that a SIPP provider pays financial redress to put consumers in a preferable financial position. This compensation may include damage payments for emotional hardship and stress. Escalating a SIPP complaint to the FOS can therefore open avenues for compensation that SIPP providers and IFAs would be keen to close.
However, despite the independent standpoint of the FOS, the adjudicators uphold rates sit at just 35%. This means that almost two thirds of SIPP complaints are turned down by the FOS. Claimants are also able to reject these findings and seek further reviews, but this can be an extremely costly endeavour with no guarantee of compensation at the end.
These figures are extrapolated from national data and are not indicative of an individuals’ chances of success. Yet they are roughly in-keeping with statistics released by the FOS earlier this year. This might look bleak for claimants worried about facing a protracted pension compensation battle with a SIPP provider or IFA.
SIPP Complaints with Money and Me Claims
There is never any guarantee of success when it comes to compensation. The financial landscape is too complex and varied to say with any degree of certainty that a compensation claim will pay dividends. What we can say with confidence, however, is that Money and Me Claims provides the knowledge and professionalism required to boost your chances of a successful SIPP complaint.
We specialise in helping clients seek compensation for mis-sold SIPP products and services, with outstanding success rates through the FOS and the FSCS. Contact us when you are ready to know more about registering a SIPP complaint with Money and Me Claims.