'No-brainer' to reintroduce permitted investment lists for SIPPs

FSCS spent £123m in SIPP claims

Hannah Godfrey
clock • 3 min read

It is a "no-brainer" to re-introduce permitted investment lists for SIPPs to protect consumers and take pressure off of the FSCS, according to Prudential head of business development Vince Smith-Hughes.

Permitted investment lists used to be a feature of self-invested personal pensions (SIPPs) but were scrapped in 2006 when pension simplification rules were introduced. According to Smith-Hughes (pictured), the set of rules worked well. However, the then-Labour government scrapped the mechanism, instead saying investors could invest their pension in whatever they liked, though some things would be taxable. As a result, there was a rise in investments in unregulated schemes that offered investors the chance to put money into the likes of Store Pods and off-plan overseas properties. Typi...

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 Retirement

PA360: Crucial advisers can spot all vulnerability characteristics

PA360: Crucial advisers can spot all vulnerability characteristics

‘It is highly likely people in decumulation will have a vulnerability’

Hope Coumbe
clock 26 April 2024 • 1 min read
Inflation shocks driving another long uptick in annuity sales

Inflation shocks driving another long uptick in annuity sales

‘Customers should be careful that this is the right decision for them’

Hope Coumbe
clock 23 April 2024 • 1 min read
Advisers warn market volatility will threaten retirement plans

Advisers warn market volatility will threaten retirement plans

More than half expect clients to postpone or change plans

Isabel Baxter
clock 26 March 2024 • 2 min read