The FCA has published Policy Statement 14/12: A new capital framework for self-invested personal pension (SIPP) operators (PS14/12).
In PS14/12, the FCA sets out final rules following its earlier consultation on a new regulatory capital framework for self-invested personal pension operators. The FCA also provides an account, in general terms, of the representations made on its earlier consultation and its response to them.
In light of the feedback to its consultation the FCA reports that it has made some changes which will mean a sizeable reduction in the total capital requirement for a significant number of firms.
The new rules come into force on 1 September 2016. They will be of particular interest to:
- firms holding or considering applying for FCA permission to establish, operate or wind-up personal pension schemes and are subject to the Interim Prudential sourcebook for Investment Business (IPRU(INV);
- financial advisers; and
- trade bodies representing members who operate personal pension schemes.
Firms who are affected by the new rules should consider the implications for their business.
The FCA explains that some firms will need to raise additional capital to comply with the rules for which they should start planning, to ensure that they have sufficient resources in place by the implementation date.
View Personal pension scheme operators (capital requirements) instrument 2014, 4 August 2014