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Twice a year, every year for the last ten years, I have had the discussion with my peers about tax free cash, or to give it its correct legislative name, pension commencement lump sum, and if it will lose its tax free status in the next announcement.
If you are quiet you will hear the whoosh of kites being flown! It is that time of the year – with the Autumn Statement on the horizon, everyone wants their ideas to be considered. Some of those kites are a new age-related bonus system, a call for a ‘pensions bonfire’ (to get rid of complexity), and various suggestions of periods of no change and independent pension commissions.
Regular readers may recall the first Blog that I wrote for Sipps Professional in December last year, entitled “The Law is a Drag”.
One of the big themes recently in all areas of business has been financial literacy and education, particularly in terms of bringing some degree of financial education to the school syllabus.
I read John Moret’s article ‘End of era for Sipps world’ with interest the other week.
The much-anticipated capital adequacy regime for SIPPs is finally upon us, and providers now have to get out their abacuses, and remove their shoes and socks, in order to undertake the calculations that will determine the requisite size of their capital reserves, underpinning the membership of their SIPP book of business and portfolio of assets.
The FCA advised AMPS at the beginning of August that they had issued an alert highlighting some of the risks arising from authorised firms accepting business from unauthorised introducers and lead generators.
So, finally the Sipp industry will see the new capital adequacy rules come into force on 1 September 2016.
2016 has been another year of consolidation in the Sipp industry, this can be seen as good or bad depending on who you are and more importantly, where the Sipps end up.

After reflecting on developments in the SIPP market over the last few weeks I’ve concluded that it’s definitely a case of out with the old and in with the new.

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