The FSA must clamp down on slow SIPP transfers which contradict its treating customers fairly (TCF) initiative, according to Suffolk Life.
John Moret, director of sales and marketing at Suffolk Life, says the FSA must crack down on the issue as anecdotal evidence suggests it can take up to a year for companies to transfer SIPPs to another provider.
Moret says moving cash and direct equities should take three weeks at the most and portfolios should only take longer when commercial property sales slow down the process.
He says slow transfers could hurt the market if potential customers see them as a product weakness.
“Transfers are off the FSA’s radar. That is unfortunate and does need to be addressed. The issue is holding back the real development of the platform SIPP market.”
He attributes the problem to providers' limited resources rather than a deliberate attempt to retain customers.
However, a spokeswoman for Prudential says transfers “can be quite a labour intensive process”. The provider says its SIPP transfers take an average of four weeks, reduced from 12 weeks when it launched its dedicated SIPP transfer desk last year.
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