Sipp provider trade body Amps has launched a scathing attack on the FSA and warns proposed changes to provider illustrations will increase costs and create confusion for consumers.
The regulator’s final proposals for improved Sipp disclosure, published in November, will require all personal pension schemes to produce key features illustrations, effect of charges and reduction-in-yield information from 6 April.
In a letter to the FSA, seen by Money Marketing, Amps chairman Andrew Roberts warns the new requirements will drive up costs for providers and consumers. He estimates the cost of implementing the changes will be £2.8m, with additional ongoing costs of £2.7m a year.
Roberts also warns plans to allow Sipp operators to choose “reasonable” projection rates for assets which are hard to value will create “spurious levels of accuracy” which investors will be required to interpret.
An FSA spokesman says: “We will be responding to this letter shortly.”