Suffolk Life's Greg Kingston believes financial advisers are underestimating the importance of the Financial Conduct Authority's capital adequacy reform. Mr Kingston, who is head of marketing and proposition at Suffolk Life, said the capital adequacy reforms had "not yet resonated" with the adviser community.The FCA has proposed that Sipp providers should hold £20,000 in capital adequacy, up from £5,000. Finalised guidance is due to be published in September.Mr Kingston said: "I think the capital issue has not yet resonated with adviser market. Sipp providers are just talking about it among themselves."Advisers will have to question their current provider to see if they can continue to operate or if they will stop operating and leave the Sipps industry altogether.{desktop}{/desktop}{mobile}{/mobile}"How firms answer that will give the adviser confidence as to whether or not they will meet the requirements. Hopefully they'll say with confidence that they're fully prepared for all eventualities but some providers might be more unsure."Although finalised guidance is unlikely to be released until September, Mr Kingston said advisers should already be asking about capital adequacy as a "very specific part" of their due diligence process. However, the new rules would require them to assess the current capital position of their provider as well as their position in the future.He suggested the issue would get greater prominence when advisers faced their own capital adequacy rules in 2015.