This article was produced by Nabarro LLP, which joined CMS on 1 May 2017.
n the few years leading up to the new pension flexibilities, many SIPP providers have had to become more creative when it came to their SIPP offerings, whether this was majoring in, for example, a property invested SIPP or the other extreme of allowing the exotic investments vehicles which the FCA has now been taking an interest in. This was demonstrated very recently by the possible pension liberation scam linked to the high risk biofuel investment which HMRC is currently investigating.
The increase in complaints could be a result of the members of these niche SIPPs now deciding to crystallise their investments only to realise their investment was not as successful as perhaps advertised or it may be down to more SIPP members and their advisers scrutinising their SIPP decisions in light of the April 2015 freedoms to analyse how their chosen provider is reacting to the changes and realising all is not well with their investment.
Yet again, providers had to run a fine line between being competitive market leaders in flexible SIPPs whilst having to create new product specs with much of the permissive legislation still being drafted. The ground may shift further against providers when the result of the recent FCA/Treasury consultation on pension freedoms emerge.
