PS14/12: A new capital framework for Self-Invested Personal Pension (SIPP) operators

Published: 04/08/2014     Last Modified: 04/08/2014

We have outlined our final capital rules for Self-Invested Personal Pension (SIPP) operators, which will come into force on 1 September 2016.

Why are we publishing rules on this?

There are approximately £2 trillion of pension assets under management in the UK pensions industry. Around £100bn of these assets are administered through SIPPs.

In November 2012 the Financial Services Authority (FSA) consulted on a new regulatory capital framework for Self-Invested Personal Pension (SIPP) operators. We have reflected on the feedback received, and have made some amendments to the rules on which the FSA consulted.

PS14/12: A new capital framework for Self-Invested Personal Pension (SIPP) operators

Who does this Policy Statement affect?

SIPPs are generally personal pensions where the consumer has more choice around the investment options than a normal personal pension. Our prudential rules do not differentiate by the product, but rather the type of provider. However, the vast majority of firms affected by these rules market themselves as SIPP operators.

This Policy Statement will be of particular interest to:

  • firms holding or considering applying for establishing/operating/winding-up a personal pension scheme permission and subject to the Interim Prudential sourcebook for Investment Business IPRU(INV) in the Financial Conduct Authority (FCA) Handbook
  • financial advisers
  • trade bodies representing members who operate personal pension schemes

This policy may also be of interest to consumers who own, or are considering buying a personal pension administered by a SIPP operator.

Next steps

Some firms will need to raise additional capital to comply with the rules. They should start planning for this to ensure that they have sufficient resources in place by the implementation date.

 

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