Plans to use self-invested personal pension (SIPP) providers' assets under management (AUM) as a factor in determining capital adequacy levels is a mistake, Dentons Pensions has said.
Last week, the Financial Services Authority (FSA) consulted on hiking SIPP providers' capital adequacy levels from a minimum of £5,000 to £20,000. It also wants to take the provider's assets under administration and the amount of non-standard assets held into account when determining capital adequacy levels. It said the minimum needed to be raised because "experience has shown the cost of winding down an operator is unlikely to be less than this amount", it said. Dentons director of technical services Martin Tilley said the regulator had made a mistake and was starting from the wrong ...
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