What effect will capital adequacy changes have on SIPP market?

I was at a SIPP conference recently and the main talking point of the morning was the proposed capital adequacy regime for SIPPs as outlined in the FSA consultation CP12/33. Now, I have been working in the SIPP arena since 1990 (when the first SIPP launched) and find it hard to think of an issue that has raised so much comment and discussion. The capital adequacy proposals place certain requirements on SIPP operators in terms of the amount of realisable assets they must hold at any one time. At present, the requirements are based on a minimum of either six or thirteen weeks’ business ...