Association of Member Directed Pensions Schemes(AMPS) chairman Neil MacGillivray talks to Helen Morrissey about the challenges facing the industry as well as his plans for his tenure.
Neil MacGillivray takes over the reins as AMPS chairman during a particularly challenging time for the SIPP industry. As providers grapple with issues such as pensions liberation they have also been hit with a third thematic review from the FCA.
The industry also awaits the outcome of a consultation on capital adequacy, the results of which could force some providers to leave the marketplace. MacGillivray discusses the impact of these issues along with his plans for AMPS during his two year tenure.
HM: We were expecting an FCA response to the capital adequacy consultation at the end of November. What impact does any delay have on the industry?
NMG: We are now not expecting to hear back from the FCA on capital adequacy until the New Year. Your response to this depends on how you look at the situation really.
You could say the delay is a good thing as the FCA is taking our suggestions on board but then it does leave the industry on tenterhooks as to what the outcome might be which is not good.However, I believe the FCA really does have to take on board the comments that we have put forward.
HM: There has been a lot of debate about how if capital adequacy requirements go through as the FCA wishes then we could see many providers exit the market? What are your views on this?
NMG: We do need to look at what happens if the estimated 18% of firms close down as a result of new capital adequacy requirements. What happens to those clients? What if they were in the middle of a commercial property purchase for instance?
You will get to a point where the other providers will move in and effectively cherry pick the best assets but what about those that are left over? Will we need a lifeboat fund for those assets that no-one else is prepared to take on?
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