Talbot and Muir, the SIPP and SSAS provider, has called on Sipp firms to do more to reveal their exposure to non-standard investments (NSIs).

The firm has welcomed the FCA’s recent continued focus on non-standard investments (NSIs) and says firms should fully disclose their exposure to NSIs. 

It says this is in the best interests of the industry, financial advisers and their clients and will ultimately provide “better customer outcomes.”
 
Non-standard investments are likely to include unlisted bonds, unregulated funds, unlisted company shares, intellectual property and any property that cannot be sold within 30 days.

The FCA recently wrote to SIPP providers requesting information on the NSIs held, including those within discretionary portfolios.  There is no clear definition of a NSI, only what is standard, and therefore anything not listed, is an NSI. 
 


Brian Talbot, director at Talbot and Muir, said: “The FCA has taken a keen interest in the investments held within a SIPP and this heightened focus is a good thing for consumers.  They are also focusing on which advisers have submitted execution-only business on behalf of clients, and also the NSIs coming through unregulated advisers.
 
“The most recent request in essence reruns the data that was provided to them in 2015, subject to some changes.  This should provide them with a better understanding of the level and type of NSIs held enabling them to compare the data to identify any trends or themes.

“We believe that SIPP operators should openly disclose their exposure to NSI and in particular their concentration in one or more individual investment.  This combined with a clearer definition of NSI from the FCA would help advisers to understand the makeup of a SIPP operator’s book of business and enable full and accurate due diligence to be undertaken.”
 
The information being requested is due back by 25 October and follows the Retirement Income Data return, which is also due for completion by the end of October.