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Sipp reforms applauded by FSA

The Financial Services Authority (FSA) has welcomed the Government’s proposed changes to self-invested personal pensions (Sipps), which could allow protected rights funds to be self-invested in the future.

The Department of Work and Pensions is holding a consultation on the changes, which should be completed by February of next year, and if the changes go ahead more pension holders will have the opportunity to invest directly into shares and property.

Standard Life Assurance has also confirmed its support for the reforms: the insurer’s technical manager, Andrew Tully, describes the changes as “excellent news” that will “give people greater control of their retirement savings”.

According to Mr Tully, between £75 billion and £100 billion is currently held in protected rights schemes and he expects much of this money to be invested in Sipps following the changes.

Sipp schemes have always been intended to give people the freedom to choose where they put their retirement savings.

However, some providers have been criticised recently for requiring investors to make minimum payment into thier insured funds.

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