Provider AJ Bell has called for a 'permitted investment' list to be reinstated for self-invested personal pensions (SIPP) to prevent any future levy shocks to advisers.
The Financial Services Compensation Scheme (FSCS) announced on 16 January it would raise a supplementary levy from life and pension advisers, requiring them to pay £36m extra for claims in relation to SIPPs. The FSCS made clear the claims related to advice to switch pension funds into high-risk investments. These generally include unregulated investments such as offshore property and storage pods. AJ Bell argued a simple solution to prevent this problem was to re-instate clear rules on which investment is permitted in a SIPP and which is not. "Making sure that the allowable inve...
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