FCA proposes new SIPP standards for consumer protection

The Financial Conduct Authority (FCA) has outlined plans to establish more robust and consistent standards within the self-invested personal pension (SIPP) market.

While acknowledging that many SIPP providers already deliver high-quality service, the FCA has identified historical issues such as inadequate due diligence, poor record-keeping, and insufficient safeguards for customer money and assets.

To address these inconsistencies and mitigate potential risks, the FCA is proposing clear and enforceable standards for due diligence.

These measures are specifically designed to improve the uniformity and effectiveness of due diligence practices across all SIPP operators, thereby securing better outcomes and increased confidence for consumers.

This initiative complements the broader objectives of the Consumer Duty by clearly defining what constitutes good practice within the SIPP sector, ensuring that firms meet high expectations for customer care and protection.

In addition to enhancing due diligence, the FCA's proposals introduce stronger requirements for the management and safeguarding of pension scheme money and assets.

These targeted and proportionate measures are designed to significantly reduce the risk of consumer detriment, particularly in scenarios where SIPP firms encounter financial difficulties or are required to wind down operations.

By fortifying these protective mechanisms, the FCA seeks to provide greater certainty for the industry and bolster overall confidence in the SIPP market.

The consultation paper, CP26/20, details these proposed changes, inviting feedback from stakeholders until August 24, 2026.

This forms part of the FCA's ongoing commitment to modernising pensions and long-term savings regulations.