The Financial Conduct Authority (FCA) and Pensions Regulator have today released a paper setting out their joint strategy for tackling some of the problems in today’s pensions market. Both authorities have responsibilities in relation to the regulation of the pensions sector and their joint approach is helpful in ensuring a consistent approach and preventing some scenarios from “falling between two stools”.
We are particularly pleased to see that the paper acknowledges two issues which we have seen causing significant difficulties to clients over the last few years.
Firstly, the administration of “smaller trust-based schemes”, which can be particularly susceptible to sharp practice; often bordering on fraud. Secondly, unsuitable investments being included in Self-Investment Personal Pensions (SIPPs), including speculative foreign property investments, which have since collapsed.
It is not uncommon for either of these scenarios to result in people losing tens of thousands of pounds from their pension funds; leaving them in a precarious position when they approach retirement. The clarification and strengthening of regulation in these sectors cannot come soon enough.
How Can Nelsons Help?
Cathryn Selby
is a Partner in our Professional Negligence team.
If you would like further advice in relation to the subjects mentioned above, please call Cathryn or another member of the team on 0800 024 1976 or contact us via our online form.