FSA may ban DFMs paying for SIPP space

Defaqto analyst Andy Leggett said the recent platform paper from the FSA and the earlier consultation on SIPP disclosure CP 11/03 both point to a ban on the practice. "Although [the platform paper] dealt specifically with the platforms industry, there is a natural read-across to SIPPs," Leggett said. "SIPP providers will have to look at the sources of their revenue streams, and SIPP pricing is likely to have to change as a result." Leggett said the arrangement where SIPP providers supplement their main income generated from pension administration fees with charges to DFMs "sits poo...