The FSA has written to Sipp operators requesting information on members who have invested in Harlequin Property.
The regulator has contacted Sipp firms asking whether any of their clients have holdings in the overseas property company. Any firm whose members have invested in Harlequin have been given five working days to provide the FSA with details of the investments.
It follows an alert issued by the regulator in January which said it had seen an increasing number of Sipps with underlying investments in overseas property purchased through Harlequin.
The alert said: “If a financial adviser recommends a Sipp knowing that the customer will sell current investments to invest in an overseas property, then just how suitable the overseas property investment is must form part of the advice given to the customer.”