It believes the widespread use of UCIS in Sipps could be the root cause of Sipp fraud.
AMPS, the trade body for Sipps and SSAS providers, believes that the Financial Services Authority and Serious Fraud Office are spending too much time on increasing red tape for Sipps providers instead of tackling the cause.
The Serious Fraud Office is concerned that Sipps trustee companies are not regulated by the Pensions Regulator or the FSA which could increase the risk of Sipp fraud.
AMPS said it was consulting with its members on whether they would support regulation by either of these two bodies.

Andrew Roberts, chairman of AMPS, said: "Whilst bona fide Sipp operators would of course be able to accommodate regulation of their bare trustee companies, this would not stop fraud being committed within the investment fund which seems to be the real area of concern.
"The regulatory bodies should tackle the root of the problem and not seek to tarnish all Sipp providers because of failed investments, illegal promotion of UCIS or isolated instances of fraud.
"At some point we should simply leave it to the Sipp operator to decide how they run their business and the consumer to choose whether they want a Sipp operator with higher charges and better controls or lower charges and fewer controls."