The Association of Member-directed Pension Schemes has rejected FSA proposals to increase the disclosure requirements for Sipp providers.
In March, the regulator proposed forcing all personal pension schemes, including Sipps, to produce key features illustrations, effect of charges and reduction in yield information.
The FSA said: “To help consumers or their advisers compare alternative pension products and identify the most appropriate pension option, we think our rules should require that comparable information is always made available.
“In order to achieve this, we are proposing that the existing Sipp exemptions are removed from Cobs 13 and Cobs 14, and the same disclosure rules applied to all personal pension schemes, whether branded as a Sipp or not.
“This approach will be consistent with the approach of the Department for Work and Pensions, which does not distinguish between different types of personal pension scheme and requires statutory money purchase illustrations for all personal pensions, whether branded as a Sipp or not, and regardless of the underlying assets.”
The proposals have been criticised by the Sipp industry, with A J Bell marketing director Billy Mackay warning they will not improve comparability between pension products.
Amps chairman Andrew Roberts says: “It is clear that there is political motivation for consumers to understand the cost of their pension, whatever form that pension might take.
“Government need to be encouraging the population to save though as otherwise people will have to work longer which reduces the number of jobs for the younger generation. Focus should be on understanding the benefit of a pension, not the cost.
“In terms of cost, it should be sufficient for consumers to understand broadly what price bracket a personal pension falls into and this can be done in a number of ways without worrying about spurious accuracy.”