Your Industry  

Regulatory Changes for Sipps - November 2013



    The product remains popular with clients. A recent survey by FTAdviser sister title Money Management fund underlying growth of 14 per cent in the six months between April and October of this year alone. This is on top of stellar growth in recent years; current estimates put the market at well above £100bn and perhaps even as high as £200bn in size.

    And herein lies the problem. The regulator has expressed concern in the past that clients are being effectively churned into Sipps that charge more but offer little in terms of promised flexibility. It is also clearly worried about the increasing use of Sipps to house esoteric and illiquid investments that all too often go to the wall and cost clients dearly.

    As a result of this scrutiny, the Sipps sector has been subject to a number of regulatory interventions and probes in recent years. Just last month a third thematic review in six years was launched, while new disclosure rules came into force in April and new capital adequacy rules are expected to be finalised before the end of the year.

    This special report will take a detailed look at the changes that have come in this year, the changes that are still yet to come and the likely outcome of the latest regulatory review, in order to examine how the Sipps market has evolved as a result of the new rules and how it is likely to be affected by regulatory shifts that are coming in the future.

    This special report is sponsored by James Hay Partnership. All editorial is independent.

    In this special report


    Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

    1. Sipp operators are now required to give an indication in the key features illustration of returns variability, the effect of charges over the lifetime of a contract on fund value and what else?

    2. What percentage of profit is one top 10 firm making from withheld cash account interest, according to Mr Moret?

    3. Why does Mr Moret believe smaller firms in particular will fall short of FCA expectations on business standards?

    4. What do some operators want to see re-introduced to take the burden away from providers in relation to investments through Sipps?

    5. Why does Mr Roberts believe calculating capital adequacy based on assets under management is wrong?

    6. How many firms did the FCA estimate will leave the market if its proposals for capital adequacy were published as drafted?

    Nearly There…

    You have successfully answered all the questions correctly, well done!

    I completed this CPD in

    To bank your CPD please complete the form below.

    Were the stated learning objectives met?

    Why weren't they met?

    What did you learn from undertaking this CPD exercise?

    Why did you undertake this piece of learning?

    Any comments about this article or FTAdviser's CPD in general?


    Congratulations, you have successfully completed and banked this piece of CPD

    Already Banked!

    You have already banked for this article.

    To bank your CPD you must sign in or


    One or more questions have been incorrectly answered,
 please review your answers and try again.

    Please complete all the above text fields to bank your CPD.

    More Your Industry CPDSee my completed CPDSee all CPD