The FSA is set to delay plans to increase disclosure requirements for Sipps due to concerns providers will not be able to meet the proposed 1 January deadline.
The changes, first outlined by the regulator in March, will require all personal pension schemes to produce key features illustrations, effect of charges and reduction-in-yield information. Sipp operators will also be required to spell out any bank interest or commission they retain on members’ funds.
The new requirements were due to come into force on 1 January 2013. However, Money Marketing understands the FSA is now planning to push back the deadline in response to concerns raised by the industry.
A source says: “The FSA is going to delay the implementation of the new disclosure requirements. There were widespread concerns about the 1 January deadline and they have been listened to by the regulator.”
The FSA declined to comment.
Aegon head of regulatory strategy Steven Cameron says: “We are very pleased the FSA has listened to industry concerns because pushing ahead with these changes would have created insurmountable practical difficulties.
“We believe the FSA should defer any further regulatory changes on any regulatory topic until after 2013 to allow RDR, pension reform and other major industry changes to bed in.”
MoretoSipps principal John Moret says: “It is still not clear exactly what the new requirements are going to be, so to expect providers to implement a significant system change in less than three months would have been unrealistic.”