Originally sent 12 November 2018
SIPPs in court – key considerations for your clients
The long journey of high risk and sometimes toxic investments in SIPPs took a new turn last week, as SIPP provider Berkeley Burke had its claim for a judicial review against a decision by the Financial Ombudsman Service (FOS) dismissed. If you missed the news stories, you can read the judgement here. The SIPP provider is appealing the decision.
Following the outcome, the FCA penned a ‘Dear CEO’ letter to all SIPP operators, requesting information and stating:
“Pending the outcome of any appeal of today’s judgement and these other cases, we expect you to consider the potential implications of them for your firm and its customers. We will be contacting SIPP operators to discuss what these may be.
“If the outcome of any of these cases calls into question your firm’s ability both now and in the future to meet its financial commitments as they fall due, you must notify the FCA immediately.”
The tone and request are serious, and rightly so. The information the regulator is asking SIPP operators to provide is the same kind of information that we have been encouraging advisers to request as part of their due diligence.
Can you provide answers if your client asks you these questions?
- When did you last review your SIPP due diligence process, and when did you last conduct it on my SIPP provider?
- Is my SIPP provider profitable?
- Does my SIPP provider have sufficient cash and/or professional indemnity insurance to cover any potential claims?
- How safe is my pension?
Why transfer to Curtis Banks?
- We’re consistently profitable and very well capitalised above the regulatory minimum
- We have the internal governance, risk management and controls you’d expect from a listed firm
- We have decades of experience in our business
- Great products at competitive prices, backed by a service-led proposition.
Speak to one of our experts today to see how we can help ease your concerns and transfer your clients to Curtis Banks.
Regards
Curtis Banks