FSCS announces it will increase pay outs for Sipp transfer claims

The FSCS has announced it will begin to increase pay outs for Sipp transfer claims. The lifeboat financial scheme said that it will be compensating claimants for losses in the value of investments held in Sipps.The move is in addition to action it has already taken to compensate for lost pension growth and charges taken from claimants' Sipps. {desktop}{/desktop}{mobile}{/mobile}In a statement it said: "FSCS will consider claims for investment losses resulting from the advice given by firms to switch to the Sipp."This will include consideration of claims for losses suffered in relation to three investment schemes (up to our investment limit of £50,000), namely: Green Oil Plantations Limited; Harlequin Hotels and Resorts; Sustainable AgroEnergy Plc."FSCS has been issuing decisions on Sipp related claims against Independent Financial Advisers (IFAs) that are no longer trading since September 2014. These claims have been in relation to advice given to transfer funds from existing pension schemes to Sipps. In many cases, the Sipp fund was then invested in non-standard asset classes, many of which have become illiquid."FSCS has been paying "interim" compensation to claimants who were advised to transfer funds from existing pension schemes to Sipps for lost pension growth and charges. It has been considering whether to compensate for losses resulting from the investments held in the Sipps.The organisation said: "We are now satisfied that the IFAs may be legally liable for these investment losses. This is on the basis that those IFAs cannot restrict their advice to the suitability of the Sipp, without considering the suitability of the investments to be held within the Sipp."When considering future claims, we will be able to take into account claimants' full losses up to our investment compensation limit."

FSCS announces it will increase pay outs for Sipp transfer claims

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