The Financial Services Compensation Scheme (FSCS), has reportedly paid out almost £13m in compensation claims against four failed Sipp advice firms.
Following Sipp transfer claims, the FSCS has declared TailorMade Independent, 1 Stop Financial Services, Kynaston-Carnoustie Financial Consultancy and Crawford Scott in default in July 2014, reported Money Marketing.
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According to Money Marketing revelations, the FSCS, UK’s compensation fund of last resort, has received 450 claims against 1 Stop and 362 claims against TailorMade and paid £7m and £5m in compensation, respectively.
53 claims has been received against Crawford Scott totalling £500,000 while 37 claims were against Kynaston-Carnoustie totalling £450,000, said the report.
The FSCS has issued repeated warnings concerning the rising number of Sipp claims, and hit life and pensions intermediaries with a £20m interim levy, in March, 2015.
To counter the situation, UK regulator FCA has banned 1 Stop partners Andrew Rees and Timothy Hughes fining them £490,100 in April 2014 and has sanctioned and fined former TailorMade directors Lloyd Pope and Peter Legerton in March 2015.
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By GlobalData
