View more on these topics

Treasury Sipp rules are dividing industry

The Treasury’s consultation on Sipp regulation is splitting opinion in the pension industry.

Some advisers and providers say it is an anomaly to have stakeholder and personal pensions regulated when Sipps are not.

Others claim that regulating the Sipp wrapper would not deter investors from putting alternative unregulated investments in Sipps and would saddle providers with a costly compliance burden.

Concerns have been growing over unregulated prop- erty and niche investment firms targeting the burgeoning Sipp market with what could be unsuitable investments. Some major providers say regulation would prevent rogue individuals setting up shell schemes where consumers would have no comeback if assets vanished.

The Treasury indicates it is the Sipp wrapper and not investments held in it that will be the subject of the consultation.

Hargreaves Lansdown head of pensions Tom McPhail says: “It looks anomalous to have two of the three main indiv- idual pension products regulated and more esoteric unregulated investments going into Sipps will strengthen calls for regulation.”

A Treasury spokesman says: “One of the options in this consultation will be to introduce a new FSA-regulated activity of establishing and operat- ing a pension scheme. This could have the effect of bringing Sipps, and all other non-occupational pension sch- emes, within the scope of FSA regulation.”

Recommended

FSA probe reveals sub-prime loan mismatch

An FSA probe into the sub-prime market reveals that a tenth of firms are arranging mortgages where client’s income was short of lenders’ requirements. Three firms out of a sample of 31 small brokers were identified as helping customers get a mortgage where income did not meet the lender’s criteria. These firms have been referred […]

Property plan tracks price index

Abbey and Knight Frank are offering a 10-year residential property plan giving investors up to 200 per cent of growth in the UK housing market over the period. The Dublin-listed product tracks the Halifax house price index and offers a capital guarantee. It is eligible for Sipp inclusion and aims to give investors exposure to […]

Old Mutual raises stakes with 3.3bn Skandia bid

Old Mutual has finally tabled a 3.3bn bid for Skandia after a pursing the company for several months. The offer is higher than the 3.1bn that the South African-based Old Mutual said it was prepared to pay earlier but still not enough to secure a Skandia board recommendation. The offer would be paid for by […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com