Picking up the pieces: Lessons from 1 Stop's SIPP failure

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What happened at 1 Stop and what can advisers do to prevent SIPP suitability failures? Fiona Murphy takes a closer look.

A  recent Financial Conduct Authority (FCA) ban on an adviser firm has put SIPP suitability firmly in the spotlight once again. In April, Andrew Rees and Timothy Hughes, partners at 1 Stop Financial Services, were banned by the regulator from performing "any significant influence function in relation to any regulated activity." Between October 2010 and November 2012, Rees and Hughes' firm advised nearly 2,000 customers on switching their existing pensions (valued at about £112m) into SIPPs, investing into diamonds and overseas property – not permitted by the members' existing schemes. Th...

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