SIPP consolidation on hold as firms wait for cap ad rules

The cost of increased due diligence on investments and extra reporting requirements is pushing up costs for SIPP providers, Martin Tilley, sales director of Dentons said. However, uncertainty over future capital adequacy requirements for SIPP operators is putting mergers of providers on hold, he said. The Financial Services Authority (FSA) has already signalled its intention to increase the capital adequacy SIPP businesses must hold. Currently, most SIPP operators must have enough capital to run the business for six weeks. However at the last Henry Stewart SIPP conference Milton...