Thursday, 01 November 2012 12:48
FSA confirms new Sipps disclosure rules for April 2013
The Financial Services Authority has published new rules requiring Sipps to provide key feature illustrations to consumers to show how charges impact on a consumers' investment returns.
Currently, Sipps are exempt from disclosure rules which apply to other personal pension schemes.
The new rules will not come into force until 6 April 2013 instead of the RDR-deadline 31 December 2012. Firms had previously indicated they would struggle to meet a deadline of 31 December.
The FSA also wants scheme operators to disclose any interest or commission they receive from banks.
Projection rates used for KFIs for Sipps should be adjusted for inflation so they are consistent with the annual pension statements which pension scheme members receive.
Currently, Sipps are exempt from disclosure rules which apply to other personal pension schemes.
The new rules will not come into force until 6 April 2013 instead of the RDR-deadline 31 December 2012. Firms had previously indicated they would struggle to meet a deadline of 31 December.
The FSA also wants scheme operators to disclose any interest or commission they receive from banks.
Sheila Nicoll, director of conduct policy at the FSA, said: "As the size of the Sipps marketplace grow and roughly half of individual pension schemes sold to consumers are Sipps, it is clear we must take a market-wide regulatory approach. We simply cannot justify maintaining the status quo.
"Personal pension scheme holders deserve to know exactly how much scheme operators retain from banks-in commission and interest. These profits can no longer be hidden from consumers."Projection rates used for KFIs for Sipps should be adjusted for inflation so they are consistent with the annual pension statements which pension scheme members receive.
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