Skip to content
ADVERTISEMENT
News

FCA closes SIPP consultation as industry calls for increased consumer protection

TISA welcomed the strengthened protections but said the due diligence rules must remain proportionate and avoid unnecessary duplication.

3 min read
Share
FCA
ADVERTISEMENT

The Financial Conduct Authority (FCA) has closed its consultation on proposed changes to self-invested personal pensions (SIPPs), set out in CP26/20, today, 24th August 2026. 

The plans focused on introducing new due diligence requirements and a Pension Scheme Money and Assets regime to improve consumer protection and raise standards across the SIPP market. 

Responding to the consultation, The Investing and Saving Alliance (TISA) has urged the regulator to avoid unnecessary dual regulatory burden. 

TISA welcomed the strengthened protections but said the due diligence rules must remain proportionate and avoid unnecessary duplication. 

Renny Biggins, head of policy: products & long-term savings at TISA, said: “Requiring firms to operate across two overlapping regimes could add significant cost and operational burden for firms without delivering a corresponding improvement in outcomes for customers. 

ADVERTISEMENT

“The FCA should create a clear route for firms to operate under a single regime, while ensuring CASS and the new PSM&A framework work consistently and complement each other where they interact.

“While we support the intention behind the due diligence rules to protect SIPP customers, firms should not be required to repeat checks or responsibilities that already sit elsewhere in the regulated distribution chain.”

Biggins added: “The final rules need to be clear and proportionate so firms understand exactly what is expected of them. 

ADVERTISEMENT

“That will help deliver stronger consumer protection without unnecessarily increasing costs or restricting the range of SIPP products available to consumers.”

Julia Sage-Bell, senior policy adviser at PIMFA, speaking for the UK Platform Group, said: “While we broadly support the FCA’s proposals around due diligence checks on SIPPs, a number of requirements being put forward need further clarity. 

ADVERTISEMENT

“First and foremost, the FCA must set out clear expectations of firms and establish how proportionate these checks have to be. 

ADVERTISEMENT

“This will allow firms to assess what resources they would need to deploy, and determine whether the proposals are realistic. This is particular concern around legacy arrangements.”

Sage-Bell added: “In their current form, the proposals risk imposing a host of unintended consequences on consumers with legacy assets. 

“In cases where firms have inherited arrangements, through acquisitions in-specie transfers or historic business models, firms may not have sufficient influence to implement new terms of business or revised contractual obligations. 

“While the proposals expect firms to “take reasonable steps to mitigate harm” where due diligence requirements can’t be met, in many cases firms will be unable to take action due to product or legislative restrictions.”

ADVERTISEMENT

She said: “In other cases, action will result in consumer detriment through charges or taxation.

“The FCA must also consider how new requirements interact with the existing requirements in the handbook. 

“In the spirit of streamlining, we believe the FCA should retain and refine the existing standard and non-standard asset classification, instead of introducing a further list of assets subject to core or additional due diligence.”

She added: “This would encourage consistency, simplicity and automation, leading to better consumer outcomes over time.”

Related