SIPP providers – getting it right

Money Marketing, a UK newspaper for financial intermediaries, has published details of a Freedom of Information Request it made it in relation to complaints received by the Financial Ombudsman Service (FOS) regarding Self Invested Personal Pension (SIPP) products.

It revealed that over the most recent 12-month period, 22 SIPP providers made 48 complaint referrals to the Ombudsman regarding investments.*

This latest revelation follows a SIPP dispute involving financial planner Berkeley Burke and the FOS in which it was heard that the firm failed to carry out full due diligence on a £29,000 unregulated collective investment scheme for one of its clients. It also follows a high profile but as yet unresolved case against Carey Pensions.

The judgment reached by the FOS in the Berkeley Burke case was significant because it placed a clear emphasis on the duty of care SIPP providers owe their clients to properly vet unregulated investments.

What Makes for a Reliable SIPP Provider?

In light of the Berkeley Burke ruling and the latest FOI revelation, any person who is considering the question of whether a Self-Invested Personal Plan might be suitable for them should run through a checklist of important questions including the following:

• Does the SIPP provider have suitable professional indemnity insurance?
• Who is providing the indemnity cover and can it be relied upon?
• Does the cover come with any limits and exclusions?
• What is the level of excess provided by the cover?
• Have you received appropriate, independent advice regarding your suitability for a SIPP transfer?
• Has your advice resulted in a positive recommendation – i.e. you have been told that a SIPP is in your best interests?
• Is a SIPP compatible with your cashflow needs?
• Is a SIPP compatible with your legacy plans – i.e. the future needs of your spouse and/or descendants?
• Are you a sufficiently sophisticated investor to understand the implications of a SIPP?

SIPPs Planning with Blacktower FM

Blacktower FM firmly believes that an investment plan should be designed to meet your particular goals, cash flow needs, time horizon and risk tolerance.

We are committed to ensuring that our clients with international pensions receive independent advice and that they develop a diversified portfolio of assets and regulated products offering long-term and tax-efficient solutions to their particular cross-border financial concerns.

For more information about how we may be able to help you protect and grow your wealth for retirement and the legacy you will leave behind you, contact your local Blacktower office today.

* https://www.moneymarketing.co.uk – Accessed 02-05-19