View more on these topics

Moret labels FSA’s Sipp recommendations unworkable

Suffolk Life has criticised the FSA’s recent calls for Sipp providers to take more responsibility for the suitability of advice claiming they are unworkable and will lead to extra costs.

Speaking at the IFP’s annual conference, marketing director John Moret said: “Taken to its logical conclusion these recommendations would appear to imply that a Sipp operator is expected to determine whether the advice given by an adviser is suitable.

“This seems to be a significant shift in responsibilities which would potentially put a Sipp operator in a difficult if not impossible position not least because a Sipp operator is rarely in position of all the facts.

“Many advisers would take exception to an operator acting in this way. I doubt that it is workable and it inevitably will lead to extra costs being incurred by the operator.”

Good practice examples listed in the FSA’s recent thematic paper on small Sipp operators suggested providers should routinely record and review the type and size of investments recommended by advisers, identify anomalous investments such as unusually small or large transactions and more esoteric investments and request copies of suitability reports.

Moret added that the measures seemed out of line with the expectations of providers of other packaged products.

Recommended

5

Is life planning coming of age?

Only a very small section of the IFA market offers a life planning service to clients but support for the area seems to be growing, albeit very slowly.

Aberdeen reports £300m inflows

Aberdeen Asset Management has announced net inflows of £300m in the last quarter, with assets managed falling from £170.9 billion to £164.7 billion The group gained assets in equities but lost them in fixed income for the third successive quarter, although the rate of decline has slowed. The group says investors remain interested in its […]

Threesixty offers discretionary deal for IFA firms

Threesixty is offering a support package for IFA firms to help them move into the discretionary fund management sector.Strategy consultant Phil Billingham says only around 2 per cent of adviser firms have discretionary permission but demand for expansion into the area is increasing.He says: “There is room in the market for firms to move towards […]

1

MPAA consultation

By Fiona Tait, pensions specialist The chancellor’s announcement of proposed cuts to the Money Purchase Annual Allowance means it will be more important than ever to be able to tell your PCLS from your UFPLS What was in the statement? Not much. The chancellor spared three sentences to inform us that the Money Purchase Annual Allowance will be reduced […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment