Advisers demand Sipp providers take more responsibility

Change is on the horizon for the Sipp market, as the regulator cracks down on bad practice.

Dentons surveyed 55 advisers last month on what they think will happen to the Sipp market. The results show there is a high expectation of dramatic change this year. The recent court case featuring Sipp administrator Carey Pensions will also have a huge effect on the whole industry.

Not only are regulators cracking down on the use of non-regulated intermediaries, the practice is also being widely criticised by the advice profession.

There is a belief Sipp providers will have to take more responsibility for the investments made by clients, especially where they are deemed ‘high risk’. To support this, Sipp providers will have to invest in more resources, which will, in turn, increase costs. This is something not all providers will have the capability to absorb.

Therefore, more consolidation in the market is possible. Or, if Sipps are not core to their business, providers could step away from them altogether.

Martin Tilley is director of technical services at Dentons Pension Management.

Dentons surveyed 55 advisers last month on what they think will happen to the Sipp market. The results show there is a high expectation of dramatic change this year. The recent court case featuring Sipp administrator Carey Pensions will also have a huge effect on the whole industry.

Not only are regulators cracking down on the use of non-regulated intermediaries, the practice is also being widely criticised by the advice profession.

There is a belief Sipp providers will have to take more responsibility for the investments made by clients, especially where they are deemed ‘high risk’. To support this, Sipp providers will have to invest in more resources, which will, in turn, increase costs. This is something not all providers will have the capability to absorb.

Therefore, more consolidation in the market is possible. Or, if Sipps are not core to their business, providers could step away from them altogether.

Martin Tilley is director of technical services at Dentons Pension Management.

Data crunch: Survey of 55 advisers

Source: Dentons Pension Management

Data crunch: Survey of 55 advisers

Source: Dentons Pension Management

Data crunch: Survey of 55 advisers

Source: Dentons Pension Management

Data crunch: Survey of 55 advisers

Source: Dentons Pension Management

Data crunch: Survey of 55 advisers

Source: Dentons Pension Management

In what situation should Sipp providers take responsibility for investment choice?

Source: Dentons Pension Management

In what situation should Sipp providers take responsibility for investment choice?

Source: Dentons Pension Management

In what situation should Sipp providers take responsibility for investment choice?

Source: Dentons Pension Management

In what situation should Sipp providers take responsibility for investment choice?

Source: Dentons Pension Management

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