View more on these topics

Fears that Sipp firms will drop out over strict capital rules

Many Sipp providers are failing to apply for authorisation because they are struggling to meet strict capital-adeq-uacy requirements, says Hornbuckle Mitchell managing director Neil Marsh.

The FSA wrote to the Association of Member-directed Pension Schemes earlier this year expressing its concern at the lack of applications for Sipp authorisation but it has refused to reveal numbers or how many firms it believes will drop out of the market before the onset of the statutory regime in April.

Marsh says he understands that in January only around 10 firms had applied for authorisation. He says the FSA expects only 100 to apply out of the 180 Sipp firms in the market.

Marsh, who applied for authorisation in December, says the lack of applications is primarily due to stringent capital-adequacy rules, requiring firms to hold the equiv-alent of at least 13 weeks’ running costs. He admits his firm found the requirements challenging and predicts smaller firms with under 1,000 schemes will struggle to comply.

Marsh says the rules dictate that firms can only use spare cash or client debts less than three months old. He admits this has proved very challenging for his firm, which is fee-based, as it is almost impossible to collect all fees within three months.


Hargreaves Lansdown investigates £600m floatation

Hargreaves Landown is eyeing a possible £600m flotation among a number of options for the firm.Head of research Mark Dampier says Lexicon Partners has been appointed in explore all the options for the future of the company including the possibility of going public.The firm’s two founders chief executive Peter Hargreaves and chairman Stephen Lansdown each […]

Duffy onslaught at ‘mediocre, overpaid’ mortgage advisers

Hamptons International Mortgages managing director Kevin Duffy says “mediocre” and overpaid mortgage advisers are plaguing the market.He says many individual brokers and their managers are simply not good enough, and are only still in their jobs due to the shortage of new talent.Duffy doubts whether some will last what many are predicting will be a […]


News and expert analysis straight to your inbox

Sign up


    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