Following the alert issued last week by the Financial Services Authority (FSA) regarding advisers recommending SIPPs (Self Invested Personal Pension), to consumers who will use them to purchase unregulated investments, the regulator has now asked both advisers and SIPP providers to whistle blow on other SIPP providers, who might be facilitating transfers into self-invested pensions with a view to making unregulated investments.
In the alert issued last week the FSA said it was concerned that some advisers were recommending SIPPs without assessing the suitability of the unregulated investment which was to be held in the SIPP.
The FSA said: “Financial advisers using this advice model are under the mistaken impression that this process means they do not have to consider the unregulated investment as part of their advice to invest in the SIPP and that they only need to consider the suitability of the SIPP in the abstract. This is incorrect.”
Working at the ‘coal face’ advisers and other SIPP providers, who may get requests to transfer assets across to other SIPP providers, are well placed to spot activity, particularly the placement of unregulated investments, which the FSA are interested in.
The FSA said: “The FSA asks regulated firms, in particular financial advisers and SIPP operators to report to the FSA firms that are carrying on these activities in breach of the FSA requirements. You can do this by contacting our whistle blowing team on 020 7066 9200.”
We want to hear from you
If you have transferred your pension, or made unregulated investments, having spoken to an unregulated ‘adviser’, we want to hear from you.
Why not contact us, in confidence, and tell us your story? We’d love to hear from you and to see if there is anything we can do to help.
Call us on 0115 933 8433 and ask to speak to Bev Stoves, one of our Independent Financial Advisers, alternatively email us at firstname.lastname@example.org