Discover the Latest Trends: Professional Complaints about Pensions and Annuities.
Exciting News! The Financial Ombudsman Service has reported a surprising decline in complaints about pensions and annuities from professional representatives in the latest quarterly period. This unexpected turn is in stark contrast to a notable increase in overall professional complaints.
Information received by Financial Planning Today reveals that professional representatives acting for consumers have actually filed fewer complaints about pensions and annuities to the Ombudsman in the latest quarter. This unexpected trend comes amidst a significant rise in complaints from professional representatives overall.
Although professional complaints now make up almost half of all complaints, the percentage of pension and annuity complaints from professionals to the FOS has decreased from 24% to 17% in the past year, reflecting a drop from one in four to less than one in five.
Furthermore, the total number of complaints about pensions and annuities in the FOS Q1 period (April to June 2024) has also decreased by 250 compared to last year. Despite industry trends, the figures suggest that the pensions and annuities sector might be showing a temporary decline in complaints from professional representatives and claims management companies.
In a similar vein, the investment sector saw around 1,150 complaints in Q1 2024/25, with approximately 10% brought by professional representatives. While this is slightly lower than last year’s 1,200 complaints, the percentage submitted by professionals has increased from 7% to 10%.
The lower number of complaints in the pensions and annuities sector compared to other financial areas may be a result of the complex nature of these claims. Despite the rise in complaints from professional representatives overall, the FOS reports that outcomes are not necessarily more favorable for consumers, with only 25% of claims upheld when brought by professionals compared to 40% when brought directly by consumers.
As the FOS continues to monitor trends and outcomes, they are also exploring the possibility of introducing a case fee for professional representatives in the near future.
