Why time limits matter (and why "too late" isn't always what it seems)
Time limits exist so that claims are brought while evidence is still available. But the law recognises that with financial advice, the harm is often hidden for years — you may not discover that a pension or investment was unsuitable until it collapses or stops paying. That is why there is more than one clock, and why a claim that looks out of time on the face of it can still be valid. The key is to check rather than assume.
Court claims: the 6-year rule
For a claim pursued through the courts, the general limitation period is six years. For a claim in contract this runs from the date of the breach (broadly, the advice); for a claim in negligence it runs from the date you suffered a loss. In many mis-selling cases the two are close together, but not always — which is where the extension below becomes important.
The 3-year "date of knowledge" extension (section 14A)
Where a negligence claim would otherwise be out of time, section 14A of the Limitation Act 1980 can give you a further three years running from the date you first had the knowledge needed to bring the claim — that is, when you knew, or could reasonably have been expected to know, that you had suffered a loss and that it was connected to the advice. For someone who only discovered a mis-sold SIPP when the underlying investment failed, this can move the effective deadline well beyond six years from the original advice. The date of knowledge is fact-specific and is ultimately for a court to decide, so it should always be checked on the individual facts.
Deliberate concealment and the 15-year longstop
Section 14A is subject to a 15-year longstop under section 14B, measured from the negligent act. However, where relevant facts were deliberately concealed from you — for example an undisclosed commission or a hidden conflict of interest — section 32 can postpone the start of the limitation period until you discovered (or could have discovered) the concealment. Concealment arguments are complex and depend heavily on the evidence.
Financial Ombudsman Service (FOS) time limits
The Ombudsman applies its own deadlines under the FCA's DISP rules. In general you must refer a complaint to FOS within six years of the event complained about, or — if later — within three years of when you became aware, or ought reasonably to have become aware, that you had cause to complain. Separately, once a firm sends you a final response letter, you normally have just six months to bring the complaint to FOS. That six-month window is strict, so a final response should never be ignored.
FSCS: no limitation period, but timing still matters
The Financial Services Compensation Scheme does not impose the same limitation rule as the courts or FOS. Instead, it pays eligible claims once a firm has been declared in default — meaning it has failed and cannot meet claims against it. In practice this means the relevant timing is tied to the firm's failure, not the date of your advice. The trade-off is that you can usually only claim through FSCS once that default is declared, and a firm's failure can also remove other routes (such as suing the firm directly), so it is worth understanding which route applies to you.
Special situations
- British Steel (BSPS) and other DB transfers: members advised to transfer during a specific window may have particular deadlines and redress schemes; the date of knowledge can be later than the transfer date.
- Ongoing advice and regular contributions: where advice was given on a continuing basis, or contributions continued over time, the relevant date may be later than the first meeting.
- Acting for a relative: if you are dealing with a family member's affairs, the same clocks apply, so an early check is sensible.
The three routes at a glance
| Route | Core time limit | When the clock starts |
|---|---|---|
| Court claim | 6 years (or 3 years from knowledge), 15-year longstop | Date of advice/loss, or date you knew/should have known (s.14A) |
| Financial Ombudsman (FOS) | 6 years from event, or 3 years from awareness; plus 6 months from a final response | Event date, or when you were reasonably aware of cause to complain |
| FSCS (failed firm) | No statutory limitation | Runs from the firm being declared in default |
What to do if your deadline may be close
If your advice was a long time ago, or you have recently received a final response letter, time may be a factor — but "a long time ago" does not automatically mean too late. The safest step is a free check: tell us roughly when you were advised and when you first suspected a problem, and we will assess your limitation position. We will be straight with you if we think you are out of time.