The Financial Service Authority (FSA) has today published its consultation paper CP06/5 detailing how it will regulate all personal pensions, particularly Self-Invested Personal Pensions (SIPPs), from April 2007. This follows changes set out by the Treasury in a recent consultation which will bring SIPPs within the FSA's remit. Under the new regime all those who operate a SIPPs scheme will need to apply for additional permission or authorisation if not already authorised.
Actions the FSA will take to ensure consumer protection before regulation starts in April 2007 include:
- Encouraging all firms to adopt regulatory standards prior to formal regulation;
- Monitoring the way SIPPs are promoted;
- Liaising with trade bodies to encourage member firms to behave appropriately.
Additional changes by the Treasury mean that in future there will be no provisions within the pensions tax legislation restricting the types of firm that can operate a personal pension scheme. Any firm wishing to establish, operate or wind-up such a scheme may apply for authorisation and must obtain permission from the FSA before doing so.
The consultation period for CP06/5 ends on 2 July 2006 and final rules will be published by October 2006.
