The Financial Service Authority (FSA) has published its consultation paper detailing how it intends to regulate all personal pensions, from April 2007.
This latest consultation paper - CP06/5 - gives particular emphasis to self-invested personal pensions (Sipps), and follows changes set out by the Treasury as part of a similar consultation which brought Sipps within the FSA's remit.
Under the new regime, all those who operate a Sipp scheme will need to apply for additional permission or authorisation if not already authorised.
The FSA says it will be encouraging all firms to adopt regulatory standards prior to actual regulation to ensure consumer protection and says it will be monitoring the way Sipps are promoted. It will also be working relevant trade bodies to encourage member firms to “behave appropriately”.
Additional changes by the Treasury mean in future there will be no provisions within the pensions tax legislation restricting the types of firm which can operate a personal pension scheme.
Any firm wishing to establish, operate or wind-up such a scheme may apply for authorisation and must obtain permission from the FSA before doing so.
The consultation period ends on 2 July 2006 and final rules will be published by October 2006.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Matthew West on 020 7484 9893 or email [email protected].IFAonline
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