Sipp firm makes changes in reaction to FCA review

A Sipp provider has reacted to an FCA review by changing annual statement packs to show if investments are standard or non-standard. Suffolk Life has made the change in response to industry-wide outcomes to the FCA's Third Thematic Review of Sipp operators.From the beginning of March, the annual statement produced by Suffolk Life will, in addition to already listing all reconciled assets within the Sipp, also show whether each investment is a standard or non-standard investment.The changes to Suffolk Life's annual Sipp report, which the firm described as "already one of the most comprehensive in the industry", takes into account the upcoming regulatory changes, providing advisers and their clients with enhanced transparency over the assets held within their Sipp.{desktop}{/desktop}{mobile}{/mobile}Greg Kingston, head of marketing and proposition, Suffolk Life, said: "A recent survey we conducted found that more than 70% of financial advisers considered awareness of the differences between standard and non-standard investments to be important for both them, their clients and Sipp operators, validating the view that this is not just an internal Sipp industry matter related to capital adequacy."We already actively record and track transactions and values of investments even when they're held with a third party, and this additional level of information will provide significant benefit to investors, setting a new standard in the Sipp market".Suffolk Life cited the following section of the FCA's PS14/12 report, as relevant to the alterations it has made.This provided further clarity on the difference between standard and non-standard assets in of August 2014, stating: "Non-standard investments are typically higher risk or speculative propositions, and the entire amount invested is at risk."These investments tend to be illiquid and difficult to value, and there may be little or no recourse to the FOS and FSCS, for example if the arrangement is mismanaged."Some may be outright scams. Most non-standard investments, such as UCIS, unlisted shares and speculative overseas property schemes, are unlikely to be suitable for those retail investors of ordinary sophistication and means who make up the vast majority of the retail market in the UK."However, more sophisticated investors may consider them to be appropriate investment opportunities."

Sipp firm makes changes in reaction to FCA review

Related items

News from Twitter