Self-invested personal pension (SIPP) operators must become more aware of current threats and review due diligence practices, the regulator has warned, as scammers become increasingly sophisticated in developing products to defeat such efforts.
In an alert, the Financial Conduct Authority (FCA) said scams had evolved from a "first generation" that offered unregulated assets for direct investment and a "second generation" that obscured these assets by packing them in special purpose vehicles (SPV) bonds. A newer "third generation" of SIPP scams obscure investments further still, it warned, by using the services of discretionary fund managers to create portfolios that invest in SPV bonds. The regulator said SIPP assets must appear on its list of standard assets and "must be capable of being accurately and fairly valued on an o...
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