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Dentons supports call for disclosure on SIPP bank accounts
03/02/2011
As a SIPP provider that supports transparency of costs and clarity of information to consumers, we welcome the FSA consultation paper CP11/03 which proposes to tackle the disclosure of interest earned from SIPP cash accounts.
The consultation paper recognises that some SIPP operators retain some or all of the interest paid on money held in deposit accounts and may use this to offset other charges. Dentons does not take any trail commission from its default SIPP bank account and believes in providing fair, clear and non misleading information for its customers.
The issue of key feature illustrations (KFIs) for personal pension schemes is also tackled, where currently SIPPs (although classified as personal pension schemes) are exempt from producing projections which show the effect of charges or reduction in yield information. The proposal is to make KPIs compulsory for SIPPs with the exception of certain asset classes such as commercial property, commodity investments, synthetic ETFs or shares.
The Consultation paper says, "These proposals aim to help further improve the quality and usefulness of personal pension scheme disclosure, remove the distinction in our rules between comparable SIPPs and non-SIPP personal pension schemes, and reduce the potential for the mis-selling and mis-buying of SIPPs."