THE majority of SIPP providers have failed to apply for authorisation from the FSA to continue operating after the April 6 deadline.
Under new legislation, every firm already selling SIPPs wishing to continue to operate as a SIPP provider must have applied to the FSA by March 23 to get permission to carry out regulated business or they will be breaking the law. However, Professional Adviser has learnt that just 20 firms out of 180 have so far applied for authorisation. The repercussions for IFA clients are severe as those invested in an unregulated firm will not have access to either the Financial Ombudsman Service or the Financial Services Compensation Scheme. Such clients could therefore lose their pension if their ...
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