Advisers should not get defensive when asked for additional information by SIPP providers, the FSA says.
Speaking at the Henry Stewart SIPP Masterclass in London, the FSA's Milton Cartwright says SIPP providers should be taking an interest in the quality of business they administer, and this will sometimes involve speaking to advisers about specific cases.
Milton, manager of pensions and other products at the FSA, says: "There was some confusion during our small SIPP review, where it was suggested we expect providers to be overseeing the advice process. This is not true."
However, he says SIPP operators should ensure they communicate with advisers, particularly where there have been unusual cases submitted.
Michael Smith, head of technical at Pointon York SIPP Solutions, believes the FSA's review has been widely misinterpreted, and says knowing advisers makes good business sense for SIPP firms.
"It can be beneficial to meet with IFAs on a regular basis, review the portfolio of business they have submitted and clarify the conditions behind any irregularities," Smith says.
"IFAs should not get defensive if a provider approaches them for more information on a specific case, and firms can help advisers by ensuring there is regular dialogue so the adviser doesn't think the worst when they receive a call from a SIPP operator."
The FSA is currently conducting a series of follow-up assessments on adviser pension switching, and will likely provide further analysis of adviser SIPP recommendations and where there is room for improvement.
It also expects providers to be keeping detailed management information, and ensuring they take an interest in the quality of their business and remain mindful of potential financial crime and consumer detriment through unsuitable SIPP sales.
An ambitious objective
'Something completely new'
'Illusion of control'
Reasons to be cheerful
Total investment reaches £9m