Fewer professional reps submitting pension claims

The percentage of professional complaints about pensions and annuities to the Financial Ombudsman Service - including from claims management companies - showed a surprise fall in the latest quarterly period, in marked contrast to a surge in professional complaints overall. According to data received by Financial Planning Today, professional representatives acting for consumers filed fewer complaints about pensions and annuities to the Ombudsman in the latest quarter. Looking at specific product categories, there were 147 new complaints in the quarter about standard investment SIPPs with an uphold rate of 39%. On the investment side the number of quarterly complaints about stocks and shares ISAs rose year on year from 287 to 339. The figures are in marked contrast to a significant rise in complaints from professional representatives overall in the latest figures. Professional complaints now account for nearly half of all complaints. Despite this rise, detailed figures show the percentage of pension and annuity complaints brought by professionals to the FOS between April and June fell from 24% last year to 17% this year, reducing from one in four to less than one in five. The overall number of complaints about pensions and annuities in the FOS Q1 period (April to June 2024) fell by 250 from 1,750 last year to 1,500 this year. The figures suggest that the pensions and annuities sector may be bucking the trend, at least temporarily, for more complaints to be seen from professional representatives and CMCs. In the investment sector in Q1 2024/25 the FOS received around 1,150 complaints, of which approximately 10% were brought by professional representatives. The number of complaints was down slightly on the 1,200 complaints submitted in Q1 last year although the percentage submitted by professional representatives was up from 7% last year to 10% this year. The figures imply that professional representatives, such as claims management companies, are finding richer pickings in sectors such as complaints about credit cards, current accounts and higher purchase agreements on cars than in pensions and investments, at least for now. Earlier this week the FOS released new quarterly data revealing a 70% jump in financial complaints overall in the latest quarter to 74,645, with nearly half of all complaints received coming from professional representatives including claims management companies (CMCs). The FOS reported a “significant” rise overall in financial complaints brought by professional complaint handlers. It is not clear why complaints about pensions, annuities and investments from professional representatives are far lower than the overall percentage but the complexity of claims may be a factor. Complaints overall from professional representatives, such as CMCs, have soared in recent times. Despite the jump, the FOS said complaints from these sources did not necessarily yield a better result for consumers. The FOS said in Q1 only 25% of claims brought by professional representatives were upheld, compared to 40% brought directly by consumers. The FOS has been consulting in recent months on a proposed case fee for professional representatives and plans to issue an update on its proposals in the coming months.

Fewer professional reps submitting pension claims

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