Complaints
Unfortunately, the latest information from the Financial Ombudsman Service (Fos) was not published at the time of press. However, the data for the year ended 31 March 2014 shows the number of complaints for small self-administered schemes (SSASs) and Sipps reached a total of 1,039 – up 49 per cent from the previous year, which saw 697 complaints.
The Fos called this a ‘significant’ increase, and the reason behind many complaints involved advice to invest in unregulated collective investment schemes (Ucis) within a Sipp. The year saw a total of 15,938 complaints, and Sipps made up 6.5 per cent of that figure.
Figures in the Table are varied, from no complaints to 448 for one plan. Avalon is unique in saying it did not receive any complaints during the 12 months to 31 December 2014. Talbot & Muir received just three for its Elite Retirement plan, only one of which was upheld. Reasons for the three complaints include an issue related to the service from the scheme’s bank and a late placement for an investment. The compensation paid out for the upheld complaint totalled £200. The plan itself has a total value in force of £620m and 2,211 full plans.
Complaints are not directly comparable due to the size of each individual plan. But at the other end of the spectrum, Suffolk Life’s deed poll scheme Sipp had 448 complaints, 276 of which were upheld with a total £71,554 paid out as compensation. The scheme has a much greater total value in force of £2.5bn and has 5,826 fully self-invested plans.
Suffolk Life says the reasons behind the complaints cover a range of issues, from delays, incorrect or insufficient communication, or a change in its allowable investment schedule.
Westerby said it received seven complaints throughout the year, and just one was upheld. Six were for poor customer service, the group says.
But customer service ultimately comes down to personal experience and expectations, so it is a difficult element to ever measure properly. The majority of complaints, according to the Table, were not upheld and the compensation paid out was minimal.
Outsourcing
Outsourcing is another element that could be a decider when picking the right provider and service for your client. The survey asked Sipp operators the following questions:
- Can any service be delegated to a third party?
- Do you insist your own solicitors, property manager or block insurance are used when property is purchased?
- Is this plan type administered on behalf of another organisation?
- Does your company administer plans on behalf of other providers or distributors?
Table 2 looks at each plan in detail. All 71 plans responded to this section of the survey, so we have a clearer view of the larger market. Regarding the first question, 12 providers said that services cannot be delegated to a third party, five operators said it was not applicable, three plans did not disclose the information and 51 per cent said outsourcing to a third party is accepted.
