AMPS: FSA cap ad plans threaten SIPP industry competition

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The Association of Member Directed Pension Schemes (AMPS) has warned the Competition Commission and the Office of Fair Trading that Financial Services Authority (FSA) capital adequacy plans may threaten competition in the self-invested personal pension (SIPP) industry.

The FSA has said 75 SIPP providers will be affected by the proposed capital adequacy regime with an estimated 14-18% of these firms likely to exit the market. Letters sent by AMPS chairman Andrew Roberts said "we are naturally concerned that a dozen of our member firms could be forced to close their business involuntarily because of a new regulatory regime that favours larger providers". The letters stated this would affect small firm's ability to take on new business and would reduce choice for consumers. Speaking to Retirement Planner, Roberts said: "A common theme [among small p...

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