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Experts say Sipps likely to come under re-reg rules

David-Moffat-IFDS-700x450.jpg
IFDS group executive David Moffat

The Financial Conduct Authority is likely to bring Sipps and discretionary fund managers under its re-registration guidelines as part of its review into adjacent markets.

Speaking at the Money Marketing re-registration round table last week, platform experts said read across was “logical”. 

In its recent platform policy statement, the regulator said it would look at the possibility of reading across to adjacent markets including Sipps.

Nucleus chief executive David Ferguson says: “The focus has all been on platforms and most of them have either made the required changes or are seen to be pretty close to doing it. The amount of money on platforms compared to the whole of the retail platform space is fairly small. Actually the big challenge is why can you not do this for legacy products as well.”

International Financial Data Services group executive David Moffat says: “There is virtually no read across into the discretionary market and very little in the Sipp market at the moment.

”I think it is a logical move to extend the re-registration requirements to these other markets.”

Origo Financial Services managing director Paul Pettitt says it will be difficult to bring Sipps under the same re-reg regime as platforms because of the types of assets often held in Sipps.

He said: ”With the type of underlying investments within a Sipp i think it will be a difficult thing to get the same kind of re-registration position as in the platform space.”

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