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FCA: SIPP market still poses risk to consumers
The Financial Conduct Authority is to investigate the self-invested personal pension (SIPP) industry in its third thematic review of the market.
The regulator also reiterated it would take enforcement action against providers “who do not have the interests of consumers at heart”.
A spokesman said the review, which echoes the ground covered by 2012’s previous thematic review, would look at three areas: operators financial resources, quality of the business SIPP operators allow in their schemes, and operational procedures and controls.
The FCA contacted SIPP providers by email yesterday.
The spokesman said: “We were quite strong in the email we sent out.
“We said that we have done a review already but we found that there could be considerable consumer detriment if people didn’t get their house in order. We now expect all SIPP operators to demonstrate they are meeting our requirements.
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“If they are unable to show compliance, and they are unable to show that they have the best interests of consumers at heart we will take further regulatory action. For us that is pretty strong.”
The FCA said there was a feeling that the industry had not moved quickly enough to improve since the publication of the review last year.
“There is a concern there is still the risk of considerable consumer detriment,” the spokesman added.