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Freedom Sipp closes to new business after an FSA reprimand

Freedom Sipp has closed for new business after an FSA visit found the firm’s service was not up to scratch.

The news comes weeks after Alliance Trust pulled its Full Sipp from the market citing administrative deficiencies.

Freedom Sipp says its product will not be available until “certain additional administrative procedures” have been put in place, but gives no indication of how long this might take.

It has insisted its existing Sipp investors will not be affected by the move.

Freedom Sipp’s website states: “During a recent visit by the FSA it was agreed that certain additional administrative procedures needed to be implemented. We have volunteered to accept no new members until the changes required have been implemented. We will keep you informed and in the meantime we can assure you that your funds continue to be held as before.”

Alliance Trust is continuing to sell its Select Sipp which is sold direct to consumers and represents around half the firm’s pension sales.

The IPS Partnership business development director Richard Mattison says: “Freedom Sipp is a relatively small company and I think the FSA’s regulation of Sipps is squeezing some of the smaller guys. It could be that the weight of the regulatory burden became too much.”

The firm’s partner John Quarrell was involved in the development of the first Sipp back in the 1980’s. He has often come out against the regulation of Sipps claiming much of it is unnecessary.

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