The Treasury has this morning published its proposals for consultation on the regulation of self-invested personal pensions and the creation of a new regulated activity that could require investment advisers to re-register with the Financial Services Authority (FSA) in order to continue advising on personal pensions from April 2007.
The consultation document, Proposed changes to the eligibility rule for establishing a pension scheme, puts forward four different proposals, including that the government take a “do nothing” approach and leave well enough alone.
But options 3 and 4 reveal the government’s preferred course of action is to create a new regulated activity of establishing, operating or winding up a personal pension scheme, that would require investment advisers who are currently able to give advice on personal pensions to seek a change in their permitted activities under the (FSA) (FSA) from 6 April 2007.
John Lawson, marketing technical manager at Standard Life, welcomes regulation saying: “I think it would make sense to regulate pensions given they are quite complex, so I am not sure that people should be able to buy a pension from someone that is not regulated.”
Meanwhile Vanessa Wood, a spokeswoman for the FSA, says the regulator will “go through the consultation document in the usual way and respond to the Treasury in due course.”
In detail the three options put forward in the Treasury paper are:
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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