UK - Independent Financial Advisors (IFA) are slipping behind on compensation payments to victims of the £11.5bn pensions mis-selling scandal.
The Financial Services Authority (FSA) report on the progress of compensation settlements shows so far that £3.3bn has been paid out to people who were mis-sold pensions products by their IFAs. According to the FSA, with the deadline for settling all compensation claims just under a year away, it is small firms that are lagging behind.
So far, FSA figures show that two thirds of consumers in the second phase of the pensions review have had their cases completed.
Philip Robinson, director of the pensions review, warned small firms that are falling behind the compensation schedule that the regulator would be paying them close attention. Robinson said that if the mis-selling review is to be completed on time, firms will have to make rapid progress with completing opt-out and non-joiner cases.
By Geoffrey Ho
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