PensionsFeb 13 2017

Sipp complaints fall by one quarter

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Sipp complaints fall by one quarter

The number of complaints to the Financial Ombudsman Service about the level of risk in self-invested personal pensions (Sipps) investments declined by a quarter over the past year.

The ombudsman received 397 complaints in 2015/2016, a drop of 23 per cent from 450 the previous year and down nearly a third from 588 complaints two years ago.

Financial advice firm Salisbury House Wealth attributed the fall in complaints to an improved attitude towards risk management in financial services and ongoing efforts to improve customer services and experience.

The advice firm said fund managers have made an effort to accurately assess and regularly review client risk profiles, and advisers have guided clients away from investing in previously popular high risk schemes.

The trend comes after Sipp investments in risky schemes, such as investments often regarded as Unregulated Collective Investment Schemes (Ucis), saw investors lose significant proportions of their savings.

Tim Holmes, managing director of Salisbury House Wealth, said advisers need to ensure that clients know their money is in safe hands and they will adhere to their individual risk appetite.

“Savers need to trust their financial adviser, especially when they are putting their money away for long periods of time. The decline in complaints reflects the seriousness with which advisers take their client’s attitude to risk when choosing where to invest their pension money.”

Mr Holmes added that the decline in complaints will encourage consumers to engage with investments and prioritise saving into a pension.

“Individuals should take an active part when investing, especially for their pension. It is important they discuss with their financial adviser what their retirement plan is and the level of risk they are comfortable with to find the right investments for them.”

julia.faurschou@ft.com