The past few years for the Sipp industry have been interesting to say the least. 

As of 1 September this year, the FCA’s latest regulations have come into force, and the past year in particular has seen a scramble for some providers to make sure they have the right amount of capital in place – with many resorting to much-anticipated consolidation and acquisitions to help boost revenue. It has also been rumoured that some providers have increased fees in order to reach the regulator’s requirements. 

If it is not something that has been on your agenda, capital adequacy really should be. It is as important for advisers and clients as it is for providers. 

While it should be noted that all data throughout the survey is as at 1 August, it should be used as a good indication of what the industry will look like for the coming years. This is why it is increasingly important for providers to disclose their capital adequacy figures. As you will see over the coming pages, there are still some who have declined to let advisers know their reserve is at 100 per cent of the requirement. Non-disclosures can speak louder than having less than 100 per cent. So it begs the question, what have some providers hiding? Advisers need to know their clients’ money is safe in case of company failure and to rest assured that there is enough money in reserve. 

Data such as this should not be company sensitive. Either providers are meeting the regulatory requirements or they are not. 

Elsewhere in the supplement, we have features from Andy Leggett at Barnett Waddingham, who looks into the aforementioned consolidation and asks whether the market is truly consolidating. Suffolk Life’s Jessica List explains more on the annual allowance and lifetime allowance, and if anything is set to change. And Robert Graves at Rowanmoor dives into possibly one of the most popular and used assets within Sipps – property. 

As ever, we appreciate any responses or suggestions for future surveys and how we can make them more beneficial to you, our readers.

charlotte.richards@ft.com