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Last updated by William at November 21, 2013.

SIPP Warning: New Rules Could Close Providers – What To Do As Investors

Consumer alert today folks!

A recent report from the Association of Professional Financial Advisors (APFA) has sent strong shock waves rippling through the investment industry. Additionally some even fear that up to 80% of SIPP Providers may go out of business because of the FSA’s recent proposal to force providers to make sure they have enough capital reserves to back funds, in order to reduce risk for consumers.

However, due to these new SIPP rules, 10% of market advisers have now left the industry! Major banking institutions have made advisors redundant as a result, and fears there will be a deep contraction in SIPP providers, could very well materialise before the year is out.

So what does this mean? Will Pension charges increase?

Yes, it is very likely this will result in higher charges for those who choose to directly control pension investments via their own Self Invested Personal Pension.

Forcing SIPP providers to increase capital so that reserves reach the FSA’s proposed ten-fold level, could be the final straw that causes some to shut down their operations entirely.

Are good DIY Pensions really possible?

Hi folks,

I’ve talked in the past about a certain type of personal pension that’s proven it’s worth for those who prefer to take an active role in managing their own portfolios. Today I want to return to them because I get the feeling that they are often under reported or even maligned a little when they shouldn’t be. As a consequence those of you who are more proactive may decide that the good returns they’ve produced in the past for others are worth considering for yourself in return for a little of your own hands on activity in managing your portfolio.

So what am I talking about?

I mean investing in or transferring to a Self Invested Personal Pension (SIPP) of course.

Here’s why I think they are now good value if you like to feel in control when investing your money.

To SIPP or Not to SIPP?

“John” is a 41 year old self-employed joiner who came to me last week asking about personal pensions. Like a lot of people he is getting concerned that his pension is not on target and he wants to increase his contributions.

As is often the case he was advised by an “expert” friend who suggested that he should take out a SIPP (Self-Invested Personal Pension). Like all aspects of financial advice it very much depends on the clients personal situation as to which vehicle is most suitable in fulfilling their retirement needs.

Lets take a look at the case for and against SIPPs :-