SIPPs: Providers split over final capital adequacy proposals

SIPP logoNearly two years after the original capital adequacy proposals the Financial Conduct Authority has now released their final rules. Most people agree the new rules are a ‘watered-down’ version of those first proposed:   Many SIPP providers, although not all will have to reserve far less capital than they originally thought UK commercial property, as well as other assets such as UK bank accounts, will now be treated as ‘standard assets’ The surcharge for taking in ‘non-standard’ assets will now be based on the number of SIPPs managed rather than the value of assets So ...

SIPPs: Warning for investors as complaints rise

SIPPs: Warning for investors as complaints riseThe Financial Services Compensation Scheme (FSCS) has reported a rise in the number of complaints relating to SIPPs (Self-Invested Personal Pensions) and at the same time has issued a warning to investors. The FSCS compensates investors for poor advice, when a complaint is upheld, but the original adviser is no longer trading. Figures released this week show that complaints relating to pensions and investments are up 15% over the past year. The FSCS has said the increase is down to the number of complaints relating to ...

SIPPs: Regulator delays cap ad decisions

iStock_000006992053XSmallThe Financial Conduct Authority (FCA) has delayed the publication of new capital adequacy rules, which will affect SIPP providers and investors alike. SIPP providers must retain certain levels of capital within their business, but there has been concern for some time that the current requirements are insufficient. Late last year, the Financial Services Authority (FSA) proposed large increases to the amount of capital SIPP providers will need to retain and launched a consultation process. New cap ad requirements for SIPP providers If implemented, the new proposals would ...

SIPPs: SIPP providers, interest rates and cash accounts – the debate continues

HiResSIPPs (Self-Invested Personal Pensions) are big business in the UK with more than one million in existence. Investors would be forgiven for thinking that SIPP providers make the majority of their income from the fees paid by investors. For many SIPP providers that is indeed the case, but some take a cut of the interest paid on the mandated SIPP bank account, which is designed to move money between investments, receive contributions, pay income and hold money in the ...