Just 7% of advisers back SIPP provider "interest turn"

The research by Momentum Pensions found that 63% of advisers think the interest turn should be disclosed in line with FCA guidance to enable comparison across the industry while 13% of advisers think it should be banned.

The findings follow a proposal by the FCA in CP15/30 that SIPP providers should be obliged to disclose retained interest charges in projections and reduction in yield calculations, which in turn follows heated debate about the lack of transparency and the overall legitimacy of taking this interest turn.

More than three out of ten advisers said they don’t have access to comprehensive facts and figures about all of the SIPP products on the marketplace. This follows earlier Momentum Pensions research that shows more than 94% of SIPP providers would support an initiative by the FCA that requires all SIPP providers to publish their charging structures in a consistent standard format to encourage straightforward and transparent comparisons.

Stewart Davies, CEO of Momentum Pensions, said:

“The retirement adviser community clearly wants the so-called interest turn issue to be resolved once and for all. The topic has been a hotly debated one for many years now, but it is now clear the adviser community is running out of patience with it. This, combined with increased legislative pressure, means the days could be numbered for the interest-turn practice.”