FSA small sipp provider review uncovers TCF concerns
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The FSA has uncovered problems relating to how small sipp providers demonstrate treating customers fairly, inadequate systems and controls and a general misunderstanding of their responsibilities in its review of non-relationship managed firms.
Money Marketing revealed in June that the regulator was reviewing small sipp operators to assess whether they are meeting the FSA’s regulatory requirements.
The FSA has found that a number of operators were unable to demonstrate that they are treating their customers fairly in administering their sipp.
It says certain providers wrongly believed that the responsibility for the quality of the Sipp business they administer lies solely with advisers.
The regulator also uncovered problems with firms’ systems and controls, including their training and competence regime, the accuracy and transparency of illustrations and the disclosure of charges.
The review began at the end of 2008 and looked at around 60 small sipp operators.
The FSA has written to all relevant firms explaining that they are required to review their business in the light of its findings. It has also published examples of good and poor practice and a fact sheet to help firms review how they operate.
The regulator says it will continue to monitor firms and will consider further regulatory action if small sipp operators fail to address any issues they identify.
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