Self-invested personal pension (SIPP) provider Dentons has revealed some of the investments it has turned down in the last 12 months.
These include all overseas off plan hotel rooms, all carbon credit investments and all land banking schemes.
"These investments do not even get to our internal investment committee assessment stage," said Martin Tilley (pictured), director of technical services at Dentons.
Of the 122 "esoteric" assets that did make it through the SIPP provider's internal investment committee in the nine months to 31 December, only 45 were accepted.
Those turned down included a wine fund, a property bond, a "cloud lending" opportunity and several unquoted UK registered shares.
This week the Financial Services Authority (FSA) issued a warning to advisers who recommend that clients invest in unregulated collective investment schemes in their SIPPs.
The alert states that it has come to the FSA's attention that some financial advisers are giving advice to clients on pension transfers or pension switches without assessing the advantages and disadvantages of investments proposed to be held in the new pension.
In particular the FSA said it has seen financial advisers moving clients' retirement savings to SIPPs that invest wholly or primarily in high risk, often highly illiquid unregulated investments, such as overseas property, store pods, forestry and film schemes.
The FSA is investigating a number of firms and has secured a variation of their Part IV permission so that they are unable to continue operating in the way.
The regulator said it is also considering take enforcement action against these firms.
Three years at Wells Fargo
Effective from 9 December 2019
One firm with permission suspensions left
Continuing the Architas education series for clients.
Needs to apply for authorisation