View more on these topics

FCA threatens Sipp regulatory action; launches third thematic review

The FCA has threatened Sipp operators with regulatory action as it prepares to launch a third thematic review into the sector.

The regulator has contacted Sipp operators outlining plans to scrutinise their financial resources, the quality of businesses within schemes, and operational procedures and controls.

In an email sent to providers, seen by Money Marketing, the FCA says: “We now expect all Sipp operators to demonstrate that they are meeting our requirements. 

“Where Sipp operators are unable to demonstrate their compliance with regulatory responsibilities and fail to show they have the best interests of consumers at heart, those firms will be subject to further regulatory action.”

An FCA source says: “In 2012 we were not particularly impressed with the industry and there is a growing frustration that we are having to do this again. This is the third thematic review we have done into Sipp operators.

“The bad practice we found in the 2012 review has not been properly cleaned up and there is a lingering concern that some firms are not looking after the interests of consumers.

“We expect Sipp operators to demonstrate they are meeting our requirements. If they are unable to show they are operating in the best interests of consumers we will be taking regulatory action.”

Earlier this week, the FCA published final guidelines for Sipp providers explaining what they need to do to comply with its rules.

The regulator will also reveal final proposals for an overhaul of the capital adequacy regime for Sipp firms by the end of the year.



New Treasury and DWP ministers announced; Hoban returns to backbenches

Conservative MP Sajid Javid has been named as Treasury financial secretary following a Government reshuffle. Javid, who was previously Treasury economic secretary, replaces Greg Clark, who has been appointed as minister of state (cities and constitution). Conservative MP Nicky Morgan takes on the Treasury economic secretary role following Javid’s promotion. Esther McVey, who is also […]

Jamie Jenkins

Calls for FCA to simplify auto-enrolment disclosure

Standard Life is calling on the FCA to simplify its pension rules for auto-enrolment to avoid confusion for employers and employees. Existing pre-auto enrolment rules mean prospective members receive key product information about contract-based schemes before they make a decision to join. The information is designed to help them make an informed decision about the pension […]


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. A key thing for the FCA to look at are all those customers who have been with a SIPP provider for years and had their fee index linked up each year vs the cost to a new customer.
    Why do loyal customers pay more??

  2. @Jimmy
    You could say the same thing about banking, mortgages, gas, electric and car insurance.

  3. That is true Phil, except that it can be very difficult to change SIPP provider, especially if you have borrowing within the SIPP!

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers. Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm