FSA issues protected rights warning

The regulator asserted that as with all advised transactions, it expects firms to ensure that any advice relating to such decisions is client-centric and suitable. The FSA suggested advisers focus on whether there is a genuine need for the investment flexibility and control associated with a SIPP, a clear explanation of the costs involved, and how the recommendation meets a customer's needs and attitude to risk. Furthermore, the FSA has leveled the playing field by publishing a policy statement confirming that when advising on contracting out into a SIPP, firms will also need to provi...