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.
