Pensions  

LV warns FCA could act against small Sipp providers

Some small self-invested personal providers need to do more to follow disclosure rules, according to LV’s Ray Chinn.

When asked were providers and advisers across the industry meeting the regulator’s Sipp disclosure requirements, Ray Chinn, head of pensions and investment at LV, said: “I think there is still some work to do there.

“If you look at the Sipp industry, specifically there are a lot of smaller Sipp providers out there, and some of those guys do not have the resources and capabilities that some of the bigger companies have.

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“It has taken them (smaller Sipp providers) a little while longer to get up to speed but they still need to get there.

“The regulator is looking at the Sipp industry generally, with a number of thematic review, and there is capital adequacy coming down the track too. There is potential for some [regulatory] action.”

In a video interview with FTAdviser’s Emma Ann Hughes, Mr Chinn said: “I think the challenge for the Sipp industry is, moving into regulation, the rules are not rules but principles and you have to interpret them.

“There will certainly be some questions from the FCA about how some firms have interpreted the rules.

“Again, I think it is important that disclosure is managed correctly so that consumers can have confidence in the industry.

“We don’t want to see huge fines and Sipps are bad plastered all over the press.

“I think it is important that customers do get a fair deal and can compare like with like when looking at different product solutions.”

Click here to watch the video interview with Mr Chinn.