Almost half of adviser firms are planning to stick with their chosen SIPP provider three months after the introduction of SIPP regulation on 6 April, according to research by Merchant Investors, a pensions and investments provider.
This is despite a third of advisers not being informed by their provider about future changes in the weeks leading up to the FSA’s regulation of the SIPP market. During that period, 14% of adviser firms dealt with providers without knowing whether or not they had applied for regulation. The survey also found almost 60% of advisers feel confused about the impact of regulation.
Following regulation more than half of advisers expect the SIPP market to shrink or consolidate while 22% expect it to grow. A quarter of adviser firms expect the type of SIPP business they write to change.
A total of 21% of firms with more than 20 staff expect the type of SIPP business they write to change post-regulation compared to 32% for firms with four to six staff and 27% for those with one to three staff.
Larger firms anticipate further market consolidation, while a third of firms with one to three employees expect no change in the SIPP market’s size.
Tim Fox, head of compliance at Merchant Investors, says: “There are doubtless many reasons for advisers to take a fresh look at their chosen SIPP providers, not least because some of them were at the time yet to be regulated. The introduction of a level playing field for the SIPP market makes a great opportunity for advisers to seek to broaden their market knowledge as well as look at the flexibility of the products they recommend."
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