FCA: Commercial property in SIPPs is 'standard asset'

Jenna Towler
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The Financial Conduct Authority (FCA) has added UK commercial property as a 'standard asset' eligible to be held within self-invested personal pensions (SIPPs), as it confirmed operators will have to hold a minimum of £20,000 under finalised capital adequacy rules.

The FCA said there are about £2trn of pension AUM in the UK pensions industry; about £100bn of these assets are administered through SIPPs. In November 2012 then-regulator the Financial Services Authority (FSA) consulted on a new regulatory capital framework for SIPP operators. The regulator's latest policy statement, A new capital framework for SIPP operators, lists key changes from its original consultation paper: - The initial capital requirement calculation should be based on the assets under administration (AUA) over the last 4 quarter-ends rather than at a set point in time. ...

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