'No-brainer' to reintroduce permitted investment lists for SIPPs

FSCS spent £123m in SIPP claims

Hannah Godfrey
clock • 3 min read

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...

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