The FCA wants to crack down on inconsistent record-keeping in SIPPs by introducing new clearer standards of due diligence.
The regulator said the move, announced today, was intended to secure better outcomes for consumers by improving consistency and adequacy of due diligence across all SIPP operators.
It said SIPPs give consumers greater control and flexibility over their retirement savings, and the market has grown substantially with assets under administration (AUA) reaching approximately £567bn across 5.3m consumers in 2024.
It said most SIPP providers were already doing the right thing and providing a good service to their customers. However, the FCA has historically found cases of poor due diligence, weak record keeping and gaps in how firms protect money and assets.
It said it hoped the new standards would drive greater consistency.
The FCA is also proposing stronger requirements for the handling of pension scheme money and assets. The proposals reduce the risk of consumer harm when firms fail or wind down, it said.
The new proposed rules are:
• due diligence requirements to reduce the risk of scams and fraud, and
• a new Pension Scheme Money and Assets (PSM&A) regime to ensure firms protect and accurately record pension scheme money and assets where they use unauthorised trustees.
The regulator said the changes aim to raise standards consistently across the market, protect consumers, and support confidence and sustainable growth in SIPPs.
It said the proposals complement the Consumer Duty by making clear what good practice looks like which will help ensure consumers invest through SIPPs with greater confidence.
Charlotte Clark, director of cross-cutting policy and strategy at the FCA, said: “SIPPs provide consumers with flexibility and choice. Many firms are doing the right thing, but we want to help consumers invest with greater confidence by ensuring standards are consistent.”
It said the consultation was primarily relevant to:
- firms that operate and provide personal pension products (both accumulation and decumulation)
- investment platform providers
- firms offering discretionary investment services
- stockbrokers
- platforms
- third-party custodians
- trustees of defined contribution occupational pension schemes
- auditors
- insolvency practitioners
- trade bodies for regulated firms
There has been broad welcome for the proposals from industry experts.
Maurice Titley, commercial director of data & dashboards at pensions administrator Lumera, said: “The FCA’s proposals should help provide greater clarity and consistency across the SIPP market, reinforcing standards that support both consumer protection and confidence.
“As SIPPs continue to grow in popularity, driven by consumers seeking greater control and flexibility over their retirement savings, it is essential that governance, due diligence and asset protection frameworks keep pace with that growth. Achieving this will require strong data governance, efficient operational processes and technology that enables firms to manage increasingly complex requirements without compromising service.”
Ben Kumar, head of strategy – wealth, public policy and investment at platform and SIPP provider 7IM, said: “We think that bringing SIPP due diligence and care of customer assets into a common framework is a brilliant idea.
"Pension saving is one of the most important investments people ever make, and more comfort that assets are properly looked after is a good thing – it would only take a couple of high profile issues for people to stop trusting the pension system (whether SIPP or otherwise)."
It has unveiled the planned new rules today through a consultation paper: ‘Adapting our rules for a changing market: self-invested personal pensions.’
• The consultation closes on 24 August. Interested parties can send comments using a form on the FCA’s website, by email to
• Editor's Note: story updated to add additional comment.