FCA warns of scheme targeting people's pensions through SIPPs

Carmen Reichman
clock

The Financial Conduct Authority (FCA) has warned of a scheme encouraging pension savers to transfer money from their work pension schemes into self-invested personal pensions (SIPPs) to be invested into an AIM listed company.

The regulator said savers are being asked to invest in investment firm Emmit through a SIPP wrapper, and some are being offered 'cash back' on their investments paid by a third party as an incentive to do this. To date £3m to £4m may have been invested in the scheme on behalf of 60 to 100 investors, some of which appear to have invested 100% of their pension assets, the FCA said. The FCA said it has "serious concerns" about pension saving losses as the individuals running the scheme "appear to be targeting inexperienced investors who might not understand the full implications of what ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FSCS places Lancashire firm Frodsham Financial Planning in default

FSCS places Lancashire firm Frodsham Financial Planning in default

Advice practice formerly traded as Tom Carroll Associates FP

Hope Coumbe
clock 13 February 2024 • 1 min read
Schroders CEO: 'Private is a much easier place to exist than public'

Schroders CEO: 'Private is a much easier place to exist than public'

Peter Harrison says he is 'not quite sure we can solve the problem'

Cristian Angeloni
clock 02 February 2024 • 3 min read
FCA: Blackmore Bond promotions had 'very relevant risk warnings'

FCA: Blackmore Bond promotions had 'very relevant risk warnings'

No enforcement action for firms who approved financial promotions

Hope Coumbe
clock 07 December 2023 • 3 min read