Thursday, 15 January 2015 12:07
Capital adequacy Judicial Review bid fails
A bid to bring a Judicial Review concerning the new capital adequacy rules for Sipp providers has failed.
The Association of Member-Directed Pension Schemes reported that its challenge over the way the consultation was run last year has been unsuccessful.
The news, broken by sister news website Sipps Professional late yesterday afternoon, is a blow to AMPS members who were unhappy about the final rules.
They claimed that the FCA had come up with an "illogical basis of capital requirement".
The Judicial Review was sought in October.
Neil MacGillivray, chairman of AMPS, said the body was disappointed with the determination. The FCA said today it would still not be commenting on the matter. Click HERE for more on this story and further background.
Meanwhile, a senior figure at a Sipp provider fears that a failure to clarify the new capital adequacy rules could lead to worried firms going too far in an attempt to meet requirements and therefore end up increasing costs for clients.
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Andy Leggett, head of business development, Sipps at Barnett Waddingham, believes frustrations within the sector about communication with the regulator have been widespread over a long period of time.
He said there had been "a bit of a clash of heads" between the regulator and providers.
He said of capital adequacy: "This is certainly of one of the big areas. There's a lot we're left wanting to know, a lot of detail of what we need for how the regime will work."
The FCA said: "The current level of capital that Sipp operators are required to maintain is not sustainable, and puts consumers at considerable risk of losing money."
To read more from Mr Leggett and the FCA's full response click HERE.
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Follow us on Twitter and get frequent news alerts @FPM_online.
Or follow Editor Kevin O'Donnell - @FPM_Kevin or staff writer James Nadal - @FPM_James.
For the latest Sipp, SSAS and retirement news visit our sister news site www.sippsprofessional.co.uk and on Twitter @SippsPro.
The Association of Member-Directed Pension Schemes reported that its challenge over the way the consultation was run last year has been unsuccessful.
The news, broken by sister news website Sipps Professional late yesterday afternoon, is a blow to AMPS members who were unhappy about the final rules.
They claimed that the FCA had come up with an "illogical basis of capital requirement".
The Judicial Review was sought in October.
Neil MacGillivray, chairman of AMPS, said the body was disappointed with the determination. The FCA said today it would still not be commenting on the matter. Click HERE for more on this story and further background.
Meanwhile, a senior figure at a Sipp provider fears that a failure to clarify the new capital adequacy rules could lead to worried firms going too far in an attempt to meet requirements and therefore end up increasing costs for clients.
{desktop}{/desktop}{mobile}{/mobile}
Andy Leggett, head of business development, Sipps at Barnett Waddingham, believes frustrations within the sector about communication with the regulator have been widespread over a long period of time.
He said there had been "a bit of a clash of heads" between the regulator and providers.
He said of capital adequacy: "This is certainly of one of the big areas. There's a lot we're left wanting to know, a lot of detail of what we need for how the regime will work."
The FCA said: "The current level of capital that Sipp operators are required to maintain is not sustainable, and puts consumers at considerable risk of losing money."
To read more from Mr Leggett and the FCA's full response click HERE.
Get FREE daily news summaries direct to your inbox. Sign up on the homepage now.Get FREE daily news summaries direct to your inbox. Sign up on the homepage now.
Follow us on Twitter and get frequent news alerts @FPM_online.
Or follow Editor Kevin O'Donnell - @FPM_Kevin or staff writer James Nadal - @FPM_James.
For the latest Sipp, SSAS and retirement news visit our sister news site www.sippsprofessional.co.uk and on Twitter @SippsPro.
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