Advisers say SIPP providers won't meet new FCA requirements

This is up from just 45% at the start of the year, indicating a growing unease amongst advisers which Momentum has described as "worrying".
 
The results also highlight that over half (55%) of all advisers say they have experienced instances where a SIPP provider has levied charged they were not expecting, leaving them “shocked”. Almost three quarters of advisers (74%) also admit they find it difficult to easily compare between the charging structures of different SIPP providers.

The new capital adequacy rules to be officially introduced on 1st September state that:
 
- The fixed minimum capital requirement for SIPP operators is to be set at £20,000,
- Capital surcharge is to be applied for firms holding non-standard assets,
- Physical gold bullion, national savings and investment products, bank account deposits, units in regulated collective investment schemes and UK commercial property are to be classed as standard assets.

Paul Forman, Momentum Pensions Director & Head of Sales - UK and Europe, said: “As September’s capital adequacy deadline draws ever closer, our research indicates a steady increase in the level of unease amongst advisers when it comes to their SIPP providers’ abilities to meet the requirements.

“A nine per cent increase is worrying – if anything, we should be seeing advisers’ fears ebbing away because SIPP providers should be communicating their position to advisers, leaving no room for doubts or concerns.”