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‘Providers struggling to meet Sipp requirements’

The lack of applications for Sipp authorisation could indicate that firms are struggling to meet the new requirements, says Origen head of self-administered pensions Claire Court.

The FSA is understood to be concerned about the lack of applications, just three months before regulation is set to come into force in April.

Origen has applied for authorisation but Court believes a number of self-invested personal pension administrators will decide to withdraw from the market and transfer their clients to bigger providers.

She says Origen is better placed than many firms for the new regulatory regime, having treated its Sipp contract as a regulated product for a number of years, both in terms of literature and robust internal systems and procedures. She says Origen also has the required capital adequacy to be regulated under the new rules.

Court says: “This may well be different from many new entrants to this market who do not have the necessary capital adequacy and systems in place. Origen has therefore already been able to apply for the required variation of permission.

“I think we will see a number of Sipp administrators who decide to withdraw from the market and transfer their clients to bigger providers as they will be unable to meet the requirements of the new regulations. This may explain the lack of applications already lodged with the FSA.”

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