Sipps and investment provider Hargreaves Lansdown says that the latest thematic review of the Sipps sector, announced this week, is a 'push' towards larger providers but not a 'direct attack' on smaller operators.

The Financial Conduct Authority announced plans for a further thematic review of Self Invested Personal Pension operators but says its plans were outlined some time ago and no major changes were made to its plans.

The move will be its third thematic review of the sector since Sipps became regulated in 2007. HL's head of pension research says that the regulator has "expressed concerns mainly with regard to firms' business procedures in areas such as handling of client money, risk controls and due diligence."

In its announcement about the review, FG13/8, the FCA says: "When the 2012 Sipp operator thematic report was published (on 23 October 2012), we proposed updated guidance which relates to the following FCA Handbook rule(s):
• Conduct of Business sourcebook (COBS) 3.2.3R (2);
• Supervision manual (SUP) chapter 3.10; and
• Client Assets sourcebook (CASS) 6 (where relevant) and CASS 7.

"This guidance, which is likely to be of most relevance to Sipp operators but will be of wider interest among firms, trade bodies and consumer representatives, has now been finalised. No substantive changes were made to the guidance following the consultation period."

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Mr McPhail said: "Given that Sipp sales now exceed 1 million and that the market was unregulated until as recently as 2007, it is understandable that the FCA is very keen to ensure that investors' interests are well protected.

"We don't see this as an attack directed specifically at small Sipp operators, however there does appear to be a regulatory push right across the pensions sector towards larger, well-run financial providers; we are hearing similar noises coming out of The Pensions Regulator.

"Looking after an investors' life savings is a responsible business and with auto-enrolment driving more and more customers into the arms of the pensions industry, it is essential that schemes are well run.'

The latest guidance to Sipp operators is here http://www.fca.org.uk/news/fg13-8-a-guide-for-sipp-operators