Changes to the capital adequacy formula, which were announced this week, have been described as 'odd' by a Sipp provider.

The FCA finally published new rules for Sipp firms on Monday after a two year consultation period.

There has been mixed reaction from experts and professionals in the sector, with a general consensus, however, that requirements were softer than many had anticipated.
John Fox, managing director of Liberty Sipp, questioned the formula for calculating capital.
He said: "There are some surprising anomalies in the formula that the FCA proposes should determine how much capital firms should hold.
"It is odd that those Sipp providers with a very high proportion of clients with non-standard assets will see their capital requirement fall, while those with very few non-standard clients will see their capital adequacy bar raised."
However, he believes the rules could have been harsher generally.

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He said: "The last-minute watering down of the requirements will allow many of the industry's smaller players to breathe a sigh of relief.
"Not only will the capital adequacy burden on them be less than the eye-watering levels predicted, but firms will have substantially longer to get their balance sheets into shape.
"This more moderate approach to capital adequacy is sure to be a result of the FCA's pragmatic assessment that the market wouldn't be able to support the rush of mergers or selling of client books by small firms that would result if they were squeezed too hard by the requirements.
"The appetite of large firms to buy smaller providers who fell foul of the new regime was always doubtful, so the FCA's decision to go for carrot rather than stick makes sense."
Mr Fox believes the biggest impact is likely to come from changes relating to standard assets.
He added: "By finally confirming that commercial property is a standard investment, the FCA has ended months of distracting speculation."