SIPPS: What capital is adequate?

The FSA has finally released its anticipated consultation paper on capital adequacy. Industry has long debated what these requirements would involve. At an Association of Member-Directed Pension Schemes (AMPS) conference earlier in the year, an FSA spokesman revealed a risk based approach could be adopted. However, the new proposals are slightly broader. Currently, SIPP operators are required to hold reserves of either £5,000, six weeks of expenditure or 13 weeks of expenditure if they hold client money. New proposals include firms increasing the fixed minimum capital requirement t...