Financial advisers are being urged to take note of FSA guidance on Sipps issued this month ahead of the start of regulation on April 6.
The IFS School of Finance is warning that advisers should only use authorised Sipp providers and that they would be wise to take the Cefa exam, which covers protection and retirement planning and includes a module on Sipps.
Head of financial regulation Mark Roberts says: “The FSA guidance should certainly be taken on board by advisers because it again reminds them that they must only use authorised Sipp operators.”
The IFS says the Cefa exam will arm advisers with the information they need to feel confident in this newly-regulated area, including how Sipps operate and the circumstances in which they are best used.
Roberts says: “Cefa includes a module on protection and retirement planning which specifically looks at how pension funds can be invested to provide capital and income in retirement, including Sipps.”
The FSA last week released a newsletter which highligh-ted the need to ensure that advice given on transferring into Sipps is suitable, reflects the customer’s needs, priorities and circumstances and is not influenced by comm-ission payments.