Educational Guide

Time Limits on Pension Mis-selling Claims — Complete Guide

Pension mis-selling claims are subject to strict time limits. Missing a deadline can permanently bar your right to compensation. This guide covers DISP complaint time limits, FOS referral periods, FSCS eligibility windows, and Limitation Act provisions for civil litigation — and explains when the clock actually starts running.

Time Limits — Essential Reading

When Time Starts Running — and When It Stops

DISP Time Limits — Complaints to the Firm

Under DISP (Dispute Resolution: Complaints) rules, a firm must only consider a complaint that is received within the following time limits:

  • Six years from the date of the act or omission that caused the loss (e.g. the date of the advice to transfer)
  • Three years from the date on which you became aware, or ought reasonably to have become aware, that you had cause to complain — whichever is the later

The 'date of awareness' test is critical. In many pension mis-selling cases, clients only become aware that the advice was unsuitable years after the transfer — for example, when their pension fund performs poorly, when the investment fails, or when media coverage alerts them to the wider scandal. This can significantly extend the time available.

FOS Referral Time Limits

If a firm rejects your complaint (or issues a Final Response Letter), you have six months from the date of the firm's Final Response to refer your complaint to the Financial Ombudsman Service.

If the firm has not responded within eight weeks, you can refer to the FOS without waiting for a response. The FOS also has its own time limit rules — generally the same six-year and three-year discovery tests as DISP — and it will consider whether a complaint is out of time even if the referral itself is made within six months of the Final Response.

FSCS Eligibility — When Claims Windows Open and Close

FSCS claims do not have a single fixed deadline. However:

  • Claims can only be made against a firm that has been declared in default by the FSCS
  • The underlying limitation period for the civil liability the FSCS is compensating still applies
  • FSCS eligibility rules may limit which claimants are covered depending on when the advice was given, the product type, and the class of protection involved

Where a firm is 'under investigation' by the FSCS, claims can often be submitted early to assist the investigation — but compensation will not be paid until the default declaration is made.

Limitation Act 1980 — Civil Litigation

For civil litigation — including Route 4 uncapped recovery through SRA-regulated solicitors — the Limitation Act 1980 provides the governing framework:

  • Contract claims: six years from the date of breach
  • Tort (negligence) claims: six years from damage occurring, or three years from the claimant's knowledge of the damage and its cause
  • Deliberate concealment: limitation period may be extended if the defendant deliberately concealed facts relevant to the claim

Section 32 of the Limitation Act provides that where a defendant has deliberately concealed relevant facts, the limitation period does not start until the claimant discovers (or could with reasonable diligence have discovered) the concealment. This can significantly extend the available period for pension mis-selling claims involving complex multi-party structures.

Key Dates to Know in the Pension Mis-selling Landscape

Several specific dates are significant across the SIPP and DB transfer mis-selling landscape:

  • April 2019: FOS award limits increased (£455k for post-April 2019 advice; £200k for pre-April 2019)
  • January 2019: Ban on cold calling in relation to pension transfers came into force
  • April 2019: FSCS investment provision cap increased to £85,000
  • September 2022: FCA PS22/13 (BSPS redress scheme) published
  • 2024: Fletcher [2024] EWCA Civ 541 — Court of Appeal confirms SIPP operator due diligence liability
Your Four Routes

How to Pursue a Pension Mis-selling Claim

Regardless of the specific product, the same four-route framework applies to most UK pension mis-selling claims.

Route 1

Direct Firm Complaint

Complain directly to the financial firm that advised you or operated your pension. The firm has eight weeks to respond under DISP rules.

If firm is still trading
Route 2

Financial Ombudsman Service

If the firm rejects your complaint or fails to respond within eight weeks, escalate to the FOS. Award limits: £455k (post-Apr 2019 advice), £200k (pre-Apr 2019).

Free escalation route
Route 3

FSCS Compensation

If the firm has failed and been declared in default by the FSCS, you can claim compensation directly. Cap: £85,000 per eligible person per firm (investment advice).

For failed firms
Route 4

Civil Litigation

Where FSCS caps leave a material shortfall, civil litigation through SRA-regulated solicitors can pursue uncapped recovery, particularly under FSMA s.27 and the Fletcher [2024] precedent.

Uncapped — no FSCS limit
Questions

Frequently Asked Questions

My adviser told me it was too late to complain — is that right?
Not necessarily. Advisers and firms sometimes tell clients it is too late as a tactic to discourage claims. The 'three years from discovery' rule means that the clock may only have started recently if you only recently became aware of the mis-selling. Get an independent assessment before accepting that your claim is time-barred.
I made a complaint once and the firm rejected it. Can I complain again?
If you did not refer your first complaint to the FOS within six months of the Final Response, you may have lost your FOS referral right for that complaint. However, if the circumstances have changed — new evidence, a further act of mis-selling, or a different legal basis — a new complaint may be available. Seek specialist advice.
The firm that advised me is in administration — do time limits still apply?
FSCS claims are subject to FSCS eligibility rules, which incorporate limitation period concepts. Even where the firm is in default, the underlying limitation period for the civil liability the FSCS is compensating continues to run. Submit your FSCS claim promptly.
Do the FCA's BSPS PS22/13 scheme time limits differ from normal DISP limits?
Yes. The PS22/13 redress scheme for BSPS clients introduced specific procedural requirements and timelines for firms to carry out their redress calculations. Clients who have not yet engaged with the redress scheme should do so promptly — the scheme has its own review process and timeline.
Can the limitation period be extended in any circumstances?
Yes. Section 32 of the Limitation Act 1980 allows extension where there has been deliberate concealment by the defendant. Under the Latent Damage Act 1986, additional time may be available in cases where the damage was not initially apparent. These are complex legal arguments that typically require specialist legal advice.
Important

Time Limits Apply

⚠ Act Promptly

Every pension mis-selling case is different, and time limits depend on the specific facts of your case. The information in this guide is general in nature. For a case-specific assessment of the time limits that apply to you, use our free assessment at redressadvisory.com or see redressadvisory.com/time-limits.

View our full guide to pension claim time limits →

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Regulatory Notice & FCA Self-Service Disclaimer

You do not need to use a claims management company to pursue a pension mis-selling complaint. You can complain directly to the financial firm, escalate to the Financial Ombudsman Service (FOS), apply to the Financial Services Compensation Scheme (FSCS), or instruct a solicitor independently — all free of charge. Using Redress Advisory does not improve the likelihood of success compared to pursuing a claim yourself, and our fee will reduce any compensation you receive.

Redress Advisory Ltd (Company No. 17295681) is a claims management company. Regulated legal work is carried out by our Operating SRA Partner solicitor firms. We are not a firm of solicitors and we do not provide legal advice.

The information on this page is for general informational purposes only. It does not constitute financial, legal, or claims management advice. Individual outcomes depend on the specific facts of each case. Historical outcomes in related cases are not a guarantee of results in your case.

FOS: 0800 023 4567  |  FSCS: 0800 678 1100  |  FCA Register: register.fca.org.uk