Some small SIPP operators are failing to meet the FSA's treating customers fairly (TCF) guidelines and must improve, the regulator warns today.
An FSA review carried out at the end of last year and involving 60 firms found some are unable to demonstrate their TCF capabilities when administering their SIPP.
It adds some operators seemed unaware they share some responsibility for the quality of SIPP business they administer. It says some cited advice as the responsibility of "other parties", such as investment advisers.
Finally, it identified problems with firms' systems and controls, including their training and competence regime, the accuracy and transparency of illustrations and the disclosure of charges.
It has written to SIPP operators outlining their findings and calling on them all to assess in detail their offering.
The FSA began regulating SIPP operators - firms that run SIPP schemes and administer investments on behalf of their clients - in April 2007, and launched its review of small SIPP operators at the end of 2008 to assess the extent to which they are meeting the FSA's regulatory requirements.
It says it will continue to monitor these firms and will consider further regulatory action if firms fail to address any issues they identify.
It has published a factsheet summarising the standards all SIPP operators should be achieving and key rules they should follow. It has also issued case studies online. Click here.
Most small SIPP operators do not give SIPP or investment advice. Their role is to run SIPP schemes and administer investments and benefits on behalf of their clients.
‘Important to have an anchor’
Lack of innovation for solutions
Some 2,000 consumers affected
Achievements, charity work and other happy snippets