EXCLUSIVE


Pensions Minister Baroness Altmann has warned that “we need to be careful not to make Sipps more expensive and less flexible” as regulators turn an ever closer eye on the sector.

The long time pensions campaigner, who took up her new role after the Conservatives won the General Election in May, said Sipps must be regulated effectively but also struck a cautionary note.

In an interview with sister publication Financial Planner magazine Baroness Altmann was asked her views on the direction that the Sipps sector is heading and what she had made of recent Sipp scandals highlighted by the FCA.

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She said: “I think pension scams of any kind are deplorable and I will continue to push for the strongest possible action to tackle them and the toughest penalties for those responsible.

“Sipps are valuable products and a popular long-term saving option for many but, of course, they need to be regulated effectively. The FCA has taken action against bad practices recently and I know it continues to conduct extensive work on Sipps.”

Asked if she saw regulation being tightened on Sipps, she said: “The FCA continues to keep a close eye but we need to be careful not to make Sipps more expensive and less flexible.”

Baroness Altmann was also asked if she was concerned about scams more generally and how can consumers be protected better now new pension freedoms are in place?

She said: “Of course, I am concerned about the existence of pension scams and we are always looking at what more we can do to tackle fraud. But I think it’s important to point out that this is not a new phenomenon. Pension scams existed long before the new freedoms – so awareness and vigilance will always be very important.”