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Sipps drive sharp rise in UK pension complaints

By Kirsten Hastings, 13 Jun 17

The Financial Ombudsman Service (FOS) received 15% more complaints about pensions in 2016/2017, with Sipps one of the most complained about products, despite a 6% drop in the number of people contacting the financial redress service.

The Financial Ombudsman Service (FOS) received 15% more complaints about pensions in 2016/2017, with Sipps one of the most complained about products, despite a 6% drop in the number of people contacting the financial redress service.

There was a 20% increase in the number of complaints received about personal pension plans, which accounted for 46% of all pensions complaints.

Annuities complaints dropped 3% to 743, with the number of people contacting FOS about draw-down complaints rising 8% to 172.

Intermediaries

IFAs received the fewest complaints in 2016/17 when the figures were broken down by business type. Complaints halved to around 1,606 from 3,409 in 2015/16.

Insurance intermediaries accounted for 3.5% of all new complaints; equating to around 11,245, down from around 11,931 complaints the previous year.

Life insurance and investment product providers received 3% of complaints in 2016/17, which equated to around 9,639 complaints.

Investments

Investment-linked product complaints fell 10% to 2,878 between April 2016 and March 2017. Investment Isas continued to make up the bulk of the issues, despite falling 2% to 1,261.

Unit-linked bond complaints dropped 11% to 484, while with-profits bonds reported a strong uptick of 27% to 256.

Two new products were complained about in 2016/17; namely capital-protected structured products and non-structured periodically-guaranteed products, which reported 140 and 73 complaints, respectively.

The sharpest decrease in complaints was in film partnerships, which dropped 55% to 44 in 2016/17.

Insurance

Whole-of-life policies and savings endowments attracted 1,997 complaints, up 3% from the previous year.

 

Pages: Page 1, Page 2

Tags: AJ Bell | Momentum Pensions | Ombudsman | Pension | Sipps

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Published by Money Map Media – part of G&M Media Ltd Copyright (c) 2024.

International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high-net-worth clients. No news, articles or content may be reproduced in part or in full without express permission of International Adviser.