Yet Another Change Ahead for Sipp's 
Added : 18th September 2007
From Left to right: Rebecca Foote, Matthew Shaw, Stephen Jones, and Jessica Smith.
In the world of pensions there is yet another change on the horizon affecting SIPPs (Self Invested Personal Pensions). From 6th April 2007, all SIPP operators must now be authorised by the Financial Services Authority (FSA). This development had been anticipated for some time as the popularity of SIPPs has continued to soar and is generally welcomed by the industry.
SIPPs have become very popular over the past few years, firstly because they allow the client greater flexibility and control over investments than is generally available from the packaged pension policies offered by insurance companies. In particular they are often used to purchase commercial property which is leased out, typically to the client’s own business, in order to produce tax free income and capital growth. Secondly, SIPPs offer an alternative to purchasing an annuity upon retirement by allowing a pension to be drawn direct from the scheme, thus enabling the pensioner to continue to self-manage the investments.
The new regulations cover areas ranging from advertising, literature, disclosure of charges, the overall sales process and the way complaints are handled, with the aim that clients will benefit from consistently clear and relevant information from SIPP operators. Another important benefit will be that clients will have access to the Financial Ombudsman Service and the Financial Services Compensation Scheme, as is currently the case with other financial products, which means greater security. Up until April this year, SIPPs as a product have not been regulated by the FSA, although most firms have chosen to work to the same professional standards expected of the rest of the financial services industry.
There is no doubt that the new financial and administrative obligations on SIPP operators will make it difficult for many smaller firms to continue as they are. News from the FSA indicates that many firms have yet to submit an application for authorisation, further highlighting this concern, with the industry expecting to see consolidation announcements over the coming weeks.
However, we have already received authorisation from the Financial Services Authority, which enhances our existing authority to offer independent financial advice on pensions, protection and investments. We welcome this regulatory change and are delighted that our authorisation has now been confirmed. We are looking forward to enhancing our service to both our existing and new clients. This exciting development is very much in line with our existing principle of treating our clients fairly and putting them
first.
We have offered a SIPP to clients since 2003 and will shortly be celebrating working with our 200th client. Interest in our SIPP has been tremendous from the outset and it continues to be extremely popular. We have received incredibly positive feedback from our clients telling us that they appreciate our professional
service, range of expertise and passion for finding the right solution for them.
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