Sipps and SSAS complaints most upheld by FOS

The number of complaints received by the Financial Ombudsman Service climbed by more than 40% in the last three months of 2024. The FOS said today it had received 68,430 complaints between October and December 2024, up from 47,868 a year earlier. However the number of complaints was down slightly on the previous quarter’s figure of 73,692. Personal pensions remained far and away the most-complained about of the investment and pension products dealt with by the Ombudsman, with complaints about some Sipps and SSAS the most upheld. There were 1,234 complaints about personal pensions in the three months, more than three times higher than the next highest complained about investment or pensions product which was stocks and shares Isas, which attracted 405 complaints. The investment product with the most upheld complaints was unregulated collective investment schemes (UCIS) in Sipps, with 94% of 26 complaints upheld. More than half, 58%, of 26 complaints about SSAS (Small Self Administered Schemes) were upheld, while complaints about DB transfers to SIPPs were the only other investment or pension product where the majority of complaints were upheld at 54%. Only two-fifths, 40%, of complaints about personal pensions were upheld. Across all products the Financial Ombudsman upheld 34% of the complaints it resolved in the third quarter of the financial year. Two other retirement products were in the top five most-complained about investment and pension products, with Sipps (standard investments) having 169 complaints and conventional annuities attracting 101. Share dealing attracted 149 complaints in the period. High levels of cases, particularly around mass redress issues such as motor finance commission arrangements, prompted the Financial Ombudsman to conducted a joint call for input with the FCA - seeking ways to modernise the redress framework to ensure it is fit for the future. James Dipple-Johnstone, interim chief ombudsman of the Financial Ombudsman Service, said: “We are continuing to see high volumes of motor finance commission cases and would encourage businesses to consider whether complaints are covered by the FCA’s temporary complaint handling rules." Source: FOS The service, which resolves disputes between businesses and their customers and is free for consumers, hit the headlines last month when its chief executive Abby Thomas suddenly resigned. Her exit came amid reports of a disagreement over planned FOS fees to be charged to claims management companies. Just days later Financial Ombudsman Service chair Baroness Manzoor announced she would be stepping down in August. The two announcements prompted MPs on the influential Treasury Committee to call on the FCA to explain its role in the shock departures.

Sipps and SSAS complaints most upheld by FOS

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