Sipp Regulation

SIPP regulation is currently being considered by the government.

At present, around 100,000 people in the UK have a Self Invested Personal Pension. The typical SIPP owner is a wealthy person with pension money invested in regulated shares or unit trusts.

As many of our readers will be aware, pension rules will be overhauled next April, leaving people free to add unregulated investments into Sipps.

Obvious investments to put into a Self Invested Personal Pension include property, art, wine and stamps.

Yet, Robert Reid, an independent financial advisor from Syndaxi has expressed concerns that there may be trouble ahead. Reid fears that changes to pension rules and false advertising could lead naïve investors astray.

One example Reid argues it that property developers could use pension changes to free up property they were having trouble with and sell it to investors who would not benefit in the long term.

Because of the unregulated nature of many investments, it would be difficult to complain about the advice they receive or the position they are in, hence, the move towards regulation.

The Treasury have announced they we be issuing a consultation paper in September on regulating Sipps through the FSA (Financial Services Authority).

The Financial Services Authority added that any changes made to pension rules would not take affect until 2007.

Date: 05.08.05