SIPP providers back FCA call for increased due diligence

Non-standard investments 'unnecessary' for most clients

Victoria McKeever
clock • 3 min read

Self-invested personal pension (SIPP) providers have endorsed the regulator's call to review due diligence practices as increasingly sophisticated scammers obscure 'non-standard investments' through the services of discretionary fund managers (DFMs).

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 DFMs to create portfolios that invest in SPV bonds. ‘Alarm bells' InvestAcc sales and marketing director Nigel Bennett called the regulator's warning "unsurprising", noting a wave of enquiries to appoint DFMs in r...

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

No naming without shaming? The FCA's transparency plans

No naming without shaming? The FCA's transparency plans

The impact of the FCA’s plans to name firms under investigation

Chris Croft
clock 27 March 2024 • 4 min read
FSCS declares three financial advisory firms in default

FSCS declares three financial advisory firms in default

Latest batch of failed firms revealed by lifeboat fund

Jenna Brown
clock 25 March 2024 • 1 min read
FCA commits to fast authorisations to boost finance sector

FCA commits to fast authorisations to boost finance sector

The regulator’s latest business plan highlights this focus

Sahar Nazir
clock 19 March 2024 • 1 min read