A rising tide of SIPP business is leaving administrators struggling to cope, according to Suffolk Life's John Moret.
Speaking at the Henry Stewart SIPP and Retirement Options conference in London this week, Moret, Suffolk Life director of sales and marketing, says administrators are failing to provide the levels of service advisers and consumers expect.
He also says the length of time some operators take to process transfer requests is unacceptable, adding the shortage of operational capacity within the pension industry threatens to damage the SIPP brand reputation.
In addition, he says operators are interpreting the FSA's SIPP handbook in different ways.
“The most worrying aspect is the poor standards of turnaround times on transfer business – a problem that is also affecting some of the Wrap platforms," he says.
"Given the increasing importance of SIPP and pensions business in the growth of the platforms it is vitally important that SIPP administrators demonstrate their ability to be able to process transfer requests in a timely fashion – particularly now SIPPs are regulated.”
He also expresses concern over the low and inconsistent levels of regulatory capital required to be a SIPP operator.
He says the varied views on some of the more mysterious types of investment are worrying given the potential exposure to tax charges for both the investor and the scheme administrator.
“There appear to be several areas where the FSA’s handbook are being interpreted differently by SIPP operators – particularly stock and cash reconciliations and the holding of client money.”
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