AMPS challenges FSCS over investment due diligence responsibility

Timing of intervention 'reckless'

Jenna Towler
clock • 2 min read

The Financial Services Compensation Scheme (FSCS) has overstepped its remit by accepting claims linked to self-invested personal pension (SIPP) providers based on due diligence failings and risks putting other operators out of business, a trade body has said.

The Association of Member-Directed Pension Schemes (AMPS) said the FSCS had made the wrong decision when it accepted claims related to three SIPP providers on the basis that they failed to carry out proper due diligence of underlying investments held within SIPPs. AMPS said it was "premature" of the lifeboat fund to assume a SIPP operator was responsible in law for due diligence on investments chosen by the member. AMPS chairman Zachary Gallagher has written to the FSCS demanding an urgent reply.  Gallagher said: "The FSCS would seem to be premature in its presumption that a SIPP o...

To continue reading this article...

Join Professional Adviser for free

  • 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

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FSCS places Lancashire firm Frodsham Financial Planning in default

FSCS places Lancashire firm Frodsham Financial Planning in default

Advice practice formerly traded as Tom Carroll Associates FP

Hope Coumbe
clock 13 February 2024 • 1 min read
Schroders CEO: 'Private is a much easier place to exist than public'

Schroders CEO: 'Private is a much easier place to exist than public'

Peter Harrison says he is 'not quite sure we can solve the problem'

Cristian Angeloni
clock 02 February 2024 • 3 min read
FCA: Blackmore Bond promotions had 'very relevant risk warnings'

FCA: Blackmore Bond promotions had 'very relevant risk warnings'

No enforcement action for firms who approved financial promotions

Hope Coumbe
clock 07 December 2023 • 3 min read