As the FSA prepares to increase the capital requirements for SIPP providers, Ian Stott, client services director at The Consulting Consortium, assesses the implications for advisers.
The rapid expansion of the self-invested personal pension (SIPP) market and the failure of a number of scheme operators have placed the SIPP industry under increasing scrutiny by the regulator. At the end of 2012, the Financial Services Authority (FSA) published a new consultation paper (12/33) which, if it remains broadly the same in finalised guidance, sets to impose tighter financial resources constraints on SIPP operators, more aligned to the size and nature of assets under administration. The FSA believes the current capital adequacy framework is not sufficient to support orderly...
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