SIPP capital adequacy: Which solution is best?

Capital adequacy has been the word on every SIPP provider’s lips for a number of years. The FSA’s consultation on capital adequacy, released in November, was divisive among SIPP providers and produced sustained debate in the months that followed. Many providers favoured what the FSA was trying to achieve – a set of rules to protect consumers if their SIPP provider had to wind down. This was crucial as there had been a number of high profile failures in the SIPP industry, mostly in firms offering overseas investments and esoteric assets. However, there was fierce contention about the F...