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FCA warns SIPP operators: weaknesses in handling pension scheme money, Consumer Duty distributor obligations, redress after FOS lead decisions, and due diligence on unregulated investments

Published on: 06 November 2024

Published by a Law360 reporter
Legal News
Article summary

The FCA’s ‘Dear CEO letter’ stated that sums held in SIPPs are often higher than in other personal pensions, heightening the risk of greater consumer harm when issues emerge. SIPPs are a form of personal pension that offer consumers significant freedom in choosing investments. The letter also reported that certain SIPP providers had not been running trustee bank accounts with sufficient controls and oversight. Crucially, the entity operating the SIPP commonly also serves as the trustee. ‘We have growing concerns about the handling of pension scheme money and assets by some firms, and the accuracy of firms’ books and records. We also have some feedback for firms on their implementation of the Consumer Duty’, wrote Lucy Castledine, the FCA’s consumer investments director, in the letter...

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