The Financial Conduct Authority (FCA) has set out proposals to drive greater consistency of standards in self-invested personal pensions (SIPPs), while maintaining the flexibility and broad investment choice they offer.
In its consultation – Adapting our rules for a changing market: SIPPS – the regulator said most SIPP providers were already doing the right thing and providing a good service to their customers but warned it had historically found cases of poor due diligence, weak record keeping and gaps in how firms protect money and assets.
To drive greater consistency, the FCA is proposing clear standards of due diligence in a bid to secure better outcomes for consumers by improving consistency and adequacy of due diligence across all SIPP operators.
The FCA is also proposing stronger requirements for the handling of pension scheme money and assets – saying its "targeted and proportionate" proposals would reduce the risk of consumer harm when firms fail or wind down.
The FCA said the proposals would bring greater certainty to the industry, improve confidence in the SIPP market and help ensure consumers can invest through SIPPs with greater confidence.
FCA director of cross-cutting policy and strategy Charlotte Clark said: "SIPPs provide consumers with flexibility and choice. Many firms are doing the right thing, but we want to help consumers invest with greater confidence by ensuring standards are consistent."
