Self-invested personal pensions (SIPP) have failed to properly disclose retained interest charges linked to cash accounts and now face stricter regulatory rules.
The Financial Conduct Authority's (FCA) latest consultation paper on pensions said the SIPP industry earns about £60m a year from retained interest charges which is not being included in projections, effect of charges tables and reduction in yields (RIY). Firms are currently required to disclose retained interest charges but the FCA said its supervisory work had revealed some firms were not complying. It added the popularity of SIPPs was projected to increase as a result of pensions freedom and choice. The paper said: "Given the scale of undisclosed retained interest charges and the i...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
