It is a "no-brainer" to re-introduce permitted investment lists for SIPPs to protect consumers and take pressure off of the FSCS, according to Prudential head of business development Vince Smith-Hughes.
Permitted investment lists used to be a feature of self-invested personal pensions (SIPPs) but were scrapped in 2006 when pension simplification rules were introduced. According to Smith-Hughes (pictured), the set of rules worked well. However, the then-Labour government scrapped the mechanism, instead saying investors could invest their pension in whatever they liked, though some things would be taxable. As a result, there was a rise in investments in unregulated schemes that offered investors the chance to put money into the likes of Store Pods and off-plan overseas properties. Typi...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes