View more on these topics

NU warns of Sipp crackdown

Norwich Union fears too many people have been put into Sipps and the FSA will crack down on advisers and providers that cannot justify sales.

Sipp sales have rocketed by 115 per cent over the last year and took in 2.5bn in the first half of 2006 alone, according to the Association of British Insurers, but NU says the minor changes to the product over the past year fail to justify this recent explosion.

NU head of pensions Iain Oliver says media hype is leading many people to pressurise advisers into recommending a Sipp. He says some firms are exclusively focusing on Sipps and are likely to be targeted by the FSA if they cannot prove their clients required added flexibility and were not better suited to a stakeholder or personal pension than a typically higher-charging Sipp.

The FSA has already raised concerns about the need for firms to justify why they put their clients into Sipps.

Oliver says: “People should not be advised to invest in expensive Sipps unless the investment choice they want is not available in a personal pension. Based on previous guidance from the regulator. I would expect it to see this as low hanging fruit.”

Standard Life head of pensions policy John Lawson says: “The FSA should investigate firms that are charging hig- her initial commission to get customers into an inferior product. Our Sipp starts at 1 per cent compared with 1.5 per cent for a stakeholder which has fewer funds.”


Integrity is vital in rebroking

Having worked over the years with a number of advisers who were, let us say, keen on bond rebroking, I have always been a bit suspicious of whose interest is really being served. What Glynn Downton fails to point out (Money Marketing, September 28) is that the new bond he has recommended to his clients […]

Compulsive viewing

The Government needs to pay a decent pension out of general taxation

Boulger blast for loan ads

John Charcol senior technical director Ray Boulger has accused Nationwide, Britannia and HSBC of misleading customers with their use of price comparisons in ad campaigns. The three lenders have all run price comparison-focused campaigns but Boulger says none provided sufficient information for consumers to make a true comparison. Nationwide’s home page states its two-year fix […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment