According to independent financial research company Defaqto, this paper will have a wider-reaching impact and indicates how the FSA may approach Self-Invested Personal Pension providers in light of the Retail Distribution Review.
Andy Leggett, Defaqto's Insight Analyst for Wealth Management, said:
"Although this policy paper dealt specifically with the platforms industry, there is a natural read-across to SIPPs and the potential implications are significant.
"SIPP providers will have to look at the sources of their revenue streams, and SIPP pricing is likely to have to change as a result.
"Some sources of revenue could disappear altogether and in any event much greater disclosure will be required. In addition, the increasingly complex pricing of many SIPPs makes for a lack of transparency, which will sit poorly with the FSA's approach to the RDR."
Defaqto's full commentary on how the Platforms Policy Paper could affect SIPPs can be downloaded, free of charge.
