Industry veteran John Moret, also known as Mr SIPP, has called on the Treasury to instigate a review and rewrite of self-invested personal pension (SIPP) regulation following a number of provider failures seemingly triggered by adverse Financial Ombudsman (FOS) determinations.
Moret, principal at MoretoSIPPs, described the SIPP regulatory framework as a "mess" that is "not fit for purpose". He explained it was created in haste in 2007 and has never been properly understood or enforced. In addition, new pension propositions are being created and labelled SIPPs which is a misnomer and confusing for customers, he added. "It is worrying that FOS appear to be making up the rules as they go along relying heavily on historic FSA and FCA guidance which they are interpreting as good practice at the time. They are also applying a court decision on a SIPP scam to a ra...
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