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Categories:Pensions

Sipp firms failing to stick to regulator's requirements

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Many Sipp providers are ignoring FSA requirements to provide retirement wake-up packs to customers, offer lower projection rates for cash and have a system capable of spotting abnormal investments.

Dunstan Thomas surveyed 23 Sipp providers and found more than half are failing to provide customers with a wake-up pack.

Thirty-five per cent claim they are working towards it this year while 17 per cent say they have no plans to start providing wake up packs to customers in 2010.

Almost three-quarters of the Sipp firms questioned admit they are failing to provide projections based on specific assets, particularly to lower the standard 5, 7, 9 per cent rates for cash.

Thirty per cent are intending to provide such projections this year while 44 per cent have no plans to offer asset-level illustrations in 2010.

The findings show that a quarter of Sipp firms are ignoring the requirement to have systems capable of spotting abnormal investment transactions.

Informed Choice managing director Martin Bamford says: “Sipp providers clearly need to be taking regulatory requirements a lot more seriously.”

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Readers' comments (3)

  • How about naming those that are not and those that are? Otherwise this is a story just potentially damning the whole SIPP market which could result in an FSA reaction which might not be necessary for the vast bulk of SIPP Providers doing a perfectly sound job.

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  • I suspect that the reason there has been no naming and shaming is that these firms are clients of Dunstan Thomas!

    I am actually quite surprised that DT are criticising the very companies that keep them in business.

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  • The article is taken from the results of the survey sent out to over 400 "participants" in the industry some of whom are providers. Some are also customers of DT.

    The intent of the article is to report the findings as found, so as to provide an update in where the industry is in the "disclosure journey".

    Later this year DT will target a similar survey at advisers.

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