News
19 March 2007
FSA Regulation of SIPPs
"We are pleased to confirm that we received confirmation from the Financial Services Authority (FSA) that we have been authorised to establish and operate personal pension schemes including self-invested personal pension schemes (SIPPs) with effect from 6 April 2007. We are also pleased that we were one of the first firms to receive approval from the FSA, as it has been widely reported that a number of providers struggled to meet the FSA's deadlines and, indeed, a number of firms have only received interim authorisation at this stage.
The changes to legislation mean that the operation of SIPPs fall under the remit of the FSA for the first time. In the past, assets held within a SIPP may have fallen under the FSA's remit but the sale of the SIPP wrapper itself, and the way in which the scheme operates, were not protected by the Financial Services Compensation Scheme or able to have recourse to the Financial Ombudsman Service if problems arose.
The FSA's rules governing SIPPs mean that the product will broadly be treated in the same way as other personal pension arrangements and packaged products such as investment bonds and unit trusts. All SIPP providers will need to produce a key features document prior to the sale of the SIPP itself and a cancellation notice following the scheme's establishment. Firms will also need to provide clarity to their clients where they are whole of market advisers but operate and recommend their own SIPP arrangement.
As a consequence of the new legislation and following the variation of our permissions by the FSA, a much higher level of protection is afforded to our clients as a direct result of the significantly higher capital adequacy requirements for all firms who become authorised by the FSA to establish and operate SIPPs..
Mattioli Woods welcomes the regulation of SIPPs as, although this will add a significant regulatory burden on us and increases the compliance red tape for our clients, it should give clients greater confidence when selecting a SIPP as their preferred method of retirement planning.
We are pleased to report that with the exception of the additional regulatory documents that will be provided after 6 April 2007, our clients will experience very little difference in the service that they receive due to the way in which our SIPP arrangements have been established and operated prior to the formal FSA requirements being implemented."
For further information:
Mattioli Woods plc |
|
Bob Woods, Executive Chairman |
Tel: +44 (0) 116 240 8700 |
Ian Mattioli, Chief Executive |
Tel: +44 (0) 116 240 8700 |
Nathan Imlach, Finance Director |
Tel: +44 (0) 116 240 8700 |
Evolution Securities Limited |
|
Joanne Lake, Corporate Finance |
Tel: +44 (0) 113 243 1619 |
Media enquiries:
Abchurch Communications |
|
Justin Heath / Louise Thornhill |
Tel: +44 (0) 20 7398 7700 |