Self-Invested Per sonal Pensions Provider Group chairman John Moret has attacked the Government for rushing through overcomplicated pension transfer regulations.
Moret says the Government is railroading the introduction of unfair and inconsistent regulations and ignoring the input of industry experts.
Sipp providers are also concerned about the speed at which new regulations on permitted investments for the pension plans are being introduced and the rationale behind some of the changes.
Moret argues that legislation which puts restrictions on the value of protected rights transfers are an additional barrier to the growth of the Sipp market. Despite this, Moret believes the number of Sipps will rocket over the next decade. He predicts there will be 500,000 Sipps by 2010 compared with the current 50,000.
Moret expects further campaigning for change to the regulations affecting Sipps after he steps down and is replaced as chairman in the new year.
He also accuses the Government of missing a golden opportunity for simplifying regulations on defined-contribution plans using the proposed individual pension accounts as a platform.
IPAs could have provided a banner for all def ined-contribution plans including stakeholder, occupational schemes and personal pensions, claims Moret.
He says that, in their existing format, IPAs merely provide another investment alternative which adds to an already overloaded regime.
“Had the Government had the vision to use the individual pension account as the pension wrapper for all defined-contribution schemes rather than as just another investment veh icle, we just might have had a chance of starting down the road to simplification,” says Moret.