The FCA has launched a major review of the funding of the Financial Services Compensation Scheme due to soaring costs, including rising SIPP claims.

The Financial Services Compensation Scheme reported today that it has so far received 1,018 claims from former members of the British Steel Pension Scheme (BSPS).

All remaining eligible London Capital & Finance (LCF) bondholders will receive an offer of compensation from the Government’s compensation scheme by 20 April.

The FCA has promised to reduce the FSCA levy from 2025 by 10% a year - but only if it can reduce the number of consumers being harmed by rogue financial services companies.

Over the next 18 months Financial Planners can expect to see a Financial Conduct Authority (FCA) that looks and feels different, according to the regulator’s chief executive Nikhil Rathi.

The FSCS has cut its latest levy forecast by £206m from £1.04bn to £833m but the body has warned that SIPP claims are rising.

The Financial Services Compensation Scheme has warned that retirees are being tempted to put money into investment products claiming to offer high returns due to the prolonged low interest savings environment.

The Financial Services Compensation Scheme (FSCS) declared 11 firms in default in March, including several wealth managers and a firm involved in BSPS transers.

Liberty SIPP has been declared in default, after being placed into administration on 27 April 2020.

The FSCS warned today that its levy for the coming year will soar by a third to over £1bn with SIPPs and “complex” pensions cases behind a big chunk of the rise.