Pensions - Articles - The FCA publishes SIPPs consultation

Most SIPP providers are already doing the right thing and providing a good service to their customers. However, the FCA has historically found cases of poor due diligence, weak record keeping and gaps in how firms protect money and assets.  

To drive greater consistency, the FCA is proposing clear standards of due diligence. This is intended to secure better outcomes for consumers by improving consistency and adequacy of due diligence across all SIPP operators.

The FCA is also proposing stronger requirements for the handling of pension scheme money and assets. The targeted and proportionate proposals reduce the risk of consumer harm when firms fail or wind down. 

The proposals will bring greater certainty to the industry, improve confidence in the SIPP market and help ensure consumers can invest through SIPPs with greater confidence. They complement the Consumer Duty by making clear what good practice looks like.

Charlotte Clark, director of cross-cutting policy and strategy at the FCA, said: 'SIPPs provide consumers with flexibility and choice. Many firms are doing the right thing, but we want to help consumers invest with greater confidence by ensuring standards are consistent.'