Suffolk Life one of the UKs leading providers and administrators of specialist pension products, particularly SIPPs, has confirmed that it will refuse all exotica investments within its SIPP until there is a suitable regulatory framework in place.
Suffolk Life welcomes the Treasurys proposals to create a new FSA regulated activity in relation to personal pension schemes, including SIPPs. However the company has serious concerns over the proposed delays in implementation until April 2007. Effectively, this presents a one year window for unregulated activity and potential financial scams to occur.
Speaking at the Westminster and City conference on SIPPs countdown to A-day John Moret, Suffolk Lifes director of sales and marketing director said: This one year window of unregulated activity is a disaster waiting to happen. Contrary to the FSAs belief the majority of SIPP providers are not currently regulated. As a result there is a high risk of poor advice and misleading advertising during this 12 month period with little or no protection for investors. It is regrettable that this situation has occurred as the problem was foreseen many months ago but action was not taken until it is apparently too late to implement a new regulatory regime from A-day.