View more on these topics

FSA investigates small Sipp firms over Ucis risks

The FSA is visiting a number of small Sipp firms to investigate the risks posed by unregulated collective investment schemes.

Over 2008 and 2009, the regulator undertook a thematic review of around 70 small Sipp providers to identify if they were meeting its regulatory requirements. Earlier this year, the FSA asked small Sipp providers to complete a questionnaire about their legal structures and capital adequacy provisions.

An FSA spokesman says the regulator’s latest investigation follows on from this work.

He says: “Following thematic work undertaken in 2008 and published in 2009, we have continued to engage with Sipp firms to help us learn how the market has changed over the last few years. The upcoming firm visits, like the questionnaire we sent out earlier this year, are part of our ongoing supervisory work in the Sipp market.”

AJ Bell marketing director Bill Mackay says visits are part of the normal process of regulating small firms which have less regular contact with the FSA than relationship-managed firms.

He says: “Sipps can use a range of investments with a range of risk but we looked and certainly have not seen anything inherent in using Ucis that poses problems as long as advisers and investors understand the risk involved.”

Suffolk Life head of marketing Greg Kingston says: “We have seen an increase in demand from advisers for the use of Ucis in our schemes but some are not liquid enough. It may be the regulator wants to see if that is a factor that could cause problems.”

AJ Bell and Suffolk Life are not part of the FSA’s investigation.


Italy downgraded by S&P

Italy has had its sovereign debt rating downgraded by Standard & Poor’s after the ratings agency voiced concerns about the country’s “weakening economic growth prospects”. S&P downgraded Italy – which has faced a number of questions over the size of its public deficit – from A+ to A with a negative outlook. The country’s borrowing […]

Permission cancelled for failing to hand over files

The FSA has cancelled the permission of Stephen Selby, trading as Selby Associates in Merseyside, for failing to hand over client files to the regulator. In its final notice to Selby, the regulator says he failed to co-operate with the FSA and failed to respond adequately to repeated requests between September 16, 2010 and April […]


CI cover “too complicated and expensive to sell”

We were debating (read that as arguing) in the office whether critical-illness cover could be sold within a simplified product regime and trying to hypothesise how the current range of CI products could be sold under a simplified advice process. You can imagine the difficulties as we still have no idea whether these “simplified” concepts […]

Time running out for employers on auto-enrolment

The 2008 Pensions Act will be something employers will never forget. The duties laid on over 1.3 million employers in the UK by that seminal act will soon assume a place high up in the priorities of employers, their advisers and the financial services industry. If left too late, it may also consume much of […]

Solving the income puzzle

There is a puzzle at the centre of financial markets. The global economy is growing, there are signs of inflation and interest rates are going up, yet yields remain low. In this article, James Foster, manager of the Artemis Monthly Distribution fund, unpicks this conundrum and looks at where investors can find income. There is […]


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