How to Make an FSCS Pension Claim — Step-by-Step Guide
Nadeem Pervazis a solicitor at Edward & Amaury Solicitors, a law firm authorised and regulated by the Solicitors Regulation Authority. Content is reviewed for legal accuracy and compliance with FCA guidance and SRA conduct standards.
TL;DR — Quick Summary
- ▸The FSCS compensates eligible claimants where an FCA-authorised firm has failed and cannot meet claims against it.
- ▸You can apply directly to the FSCS online for free, or instruct a solicitor to do so on your behalf.
- ▸The compensation limit for investment advice (including pension advice) is £85,000 per person per failed firm.
- ▸Straightforward claims typically take 6–12 months; complex cases can take longer.
- ▸If your loss exceeds £85,000, other routes may be needed to recover the excess.
If the firm that gave you unsuitable pension advice has since failed, the Financial Services Compensation Scheme (FSCS) may be able to compensate you. This page explains the process step by step — what to prepare, how to apply, what the FSCS assesses, and how long it takes.
Quick Answer
To make an FSCS pension claim: confirm the firm has been declared in default; gather evidence of the advice and your loss; apply via the FSCS website or through a solicitor. Compensation is up to £85,000 per failed firm. The process typically takes 6–12 months.
Is the FSCS the Right Route for You?
The FSCS route is appropriate where:
- The firm that gave you the advice was FCA-authorised at the time of the advice, and
- That firm has since been declared in default by the FSCS — meaning it is insolvent or otherwise unable to meet claims.
If the firm is still trading and FCA-authorised, the FOS complaint route is the appropriate first step. The FSCS is specifically for claims against failed firms.
Check the Firm's Status First
Search for the firm on the FSCS website (fscs.org.uk) and the FCA register (register.fca.org.uk). If the firm is listed as declared in default by the FSCS, you can claim. If it is still registered with the FCA, use the FOS route first. If you are unsure, contact us and we can check for you.
Step-by-Step: Making Your FSCS Pension Claim
Confirm the firm has failed
Check the FSCS website or FCA register to confirm that the firm that advised you has been declared in default by the FSCS. The FSCS can only compensate where a firm has failed and cannot meet claims against it.
Gather your evidence
Collect all documents relating to the advice and your pension: suitability reports, pension correspondence, scheme benefit statements, transfer documents, and any other records. If you don't have documents, make a data subject access request (DSAR) to the firm's administrator or the FSCS itself.
Calculate your loss
Work out the difference between what your pension is now worth and what it would have been worth under a suitable investment (or still in your original scheme). For DB transfer claims, this requires comparing the guaranteed benefits given up against the current fund value.
Submit your FSCS application
Apply via fscs.org.uk or instruct a solicitor to apply on your behalf. You will need to provide details of the failed firm, the nature of the advice, the loss you have suffered, and supporting documentation.
FSCS investigates your claim
The FSCS will assess whether the firm's advice was unsuitable and whether it caused a loss. They may request further information. For pension transfer claims, their assessment follows the FCA's redress methodology.
Receive the FSCS decision
The FSCS will issue a decision on your claim. If upheld, compensation will be paid up to the £85,000 limit. If you disagree with the outcome, the FSCS has an internal complaints process and you can ultimately refer the matter to the Financial Ombudsman Service.
The FSCS Compensation Limit
For investment advice claims — including pension transfer advice — the FSCS compensation limit is £85,000 per eligible claimant per failed firm. This means:
- If your loss from a single failed firm is £85,000 or less, the FSCS can compensate the full amount.
- If your loss exceeds £85,000, the FSCS can only pay up to the limit. The excess may need to be pursued through other routes (e.g. legal action against a SIPP operator or another party).
- If you have claims against multiple failed firms — for example, both the adviser and the SIPP operator — each claim is assessed separately up to the £85,000 limit per firm.
What Evidence Does the FSCS Need?
If you do not have some of these documents, a data subject access request (DSAR) to the firm's administrator or liquidator can often recover records. The FSCS can also obtain some evidence directly. See our evidence guide for more detail.
Should You Use a Solicitor for an FSCS Claim?
You can apply to the FSCS directly — the service is free and does not require legal representation. However, using a solicitor can be beneficial where:
- The claim involves a defined benefit transfer, where the loss calculation is complex
- The initial FSCS offer is below the actual loss and needs to be challenged
- You have claims against multiple parties (adviser and SIPP operator)
- You are unsure whether your loss exceeds the £85,000 limit and need a strategy for recovering the excess
We handle FSCS pension claims and can advise on whether professional assistance is likely to add value in your specific case.