31 & no pension…. eek – Martin has panicked me into action

EdInvestor

The rules require Sipp providers holding client money or assets to set aside the equivalent of 13 weeks' expenditure..

Yes, this applies to the associated bank or broker which is actually holding the money.For instance in the case of Sippdeal's Sipps, the bank is BoS and the broker is James Brearley, and the capital adequacy rules apply to these two .Sippdeal itself does not hold the money or assets. This is the normal; way it is done.

The journalist should consult a Sipp company rather than a lifeco which would not be expected to know about these issues.

ReportInvestor

Assuming you are right, Ed, I wonder how many IFAs will still warn potential clients away from SIPPs using this literature?

dunstonh

Assuming Ed is right... and I am not sure she is. I have done a bit more searching and everything indicates that it is the SIPP provider that will be affected.

Assuming you are right, Ed, I wonder how many IFAs will still warn potential clients away from SIPPs using this literature?

All indications are that the FSA is very concerned at the number of SIPPs being taken out. It feels that too many people are going to SIPPs when stakeholder or personal pension is better suited.

Also, on another tack, in this weeks money marketing, there was an article that many of these online companies will strugle with the FSA's TCF requirements and just because they dont give advice, they will still have to comply with TCF rules. That could hit costs as well.