The FCA is set to refer two individuals at Sipp providers to enforcement following a thematic review.
In October the regulator threatened Sipp operators with regulatory action ahead of its third thematic review into the sector.
Speaking at the FCA’s annual public meeting in London today, FCA chief executive Martin Wheatley said: “We have had a continual issue over a number of years with Sipps being used as vehicles to pull people into inappropriate products.
“Two firms that have run those operations need to look very carefully at the products that are being invested in Sipps. Investigations are underway and this is something we will come back to.”
An FCA spokesman says two individuals, from two different Sipp providers, are in the process of being referred to the regulator’s enforcement division.
In April the FCA issued a further warning to advisers encouraging clients to invest their pension in unregulated products through Sipps.