The Financial Services Compensation Scheme (FSCS) has published its annual report and accounts for 2014/15.
Key points of the report include:
- The FSCS received 53,662 claims during 2014/15 - a 50% increase on the prior year.
- It paid out £327 million in compensation in 2014/15 - a 35% increase on the prior year, with the average compensation payment being £8,855.
- It believes that the numbers and costs of complex SIPPs-related decisions are likely to "rise steeply" during 2015/16.
- Following the liberalisation of retirement savings in April 2015 the FSCS is keen to discuss protection limits with the FCA and the PRA as part of their forthcoming review of FSCS protection and funding.
- The FSCS' new claims-handling system Connect was phased in during May 2015, but at a greater than anticipated cost which caused frustrations in the industry triggering the FSCS Chief Executive to commission an independent review into the project.
The report can be read in full here.