Sipp providers may fail to meet capital adequacy rules

Two out of five – 40 per cent – specialist retirement advisers are concerned that self-invested personal pension (Sipp) providers will not be able to meet capital adequacy requirements.

Research from Momentum Pensions, an international pension specialist and independent pension trustee, was carried out five months before new capital adequacy rules required by Sipp providers come into effect.

Under the capital adequacy rules, commercial property held in a Sipp is to be classed as a standard asset.

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Previously, the regulator had classed commercial property as a non-standard asset. Momentum Pensions research further shows that 36 per cent want more clarity on specific property transfer rules.