The Financial Conduct Authority has opened a consultation on new rules for firms operating self-invested personal pensions, or SIPPs, aimed at tightening consumer protection in higher-risk parts of the market while supporting sustainable growth. The proposals would put explicit due diligence requirements into the FCA Handbook and introduce a new Pension Scheme Money and Assets regime for pension structures that use unauthorised trustees and are not currently covered by the Client Assets Sourcebook. The FCA said it has seen weaknesses at some firms in investment and introducer checks, controls over trustee bank accounts, and record-keeping, leading to consumer losses and, in more serious cases, delays and difficulties in scheme wind-downs or transfers. For SIPPs that give consumers ongoing choice over underlying investments, the FCA proposes mandatory initial and ongoing due diligence on relevant third parties such as introducers, advisers and discretionary investment managers, with extra checks where parties are unauthorised or overseas. It also proposes core due diligence for all investments, plus additional checks for higher-risk assets with fewer existing protections, including non-mass market investments, most restricted mass market investments and direct commercial property. Where third parties can acquire and manage assets without the operator’s involvement in each transaction, firms would need clear contractual limits on permitted assets, reporting arrangements and at least quarterly oversight. Separately, the proposed Pension Scheme Money and Assets regime would require firms using unauthorised trustees to maintain comprehensive internal records of scheme money and assets, allocate receipts promptly, perform daily internal reconciliations of scheme money, carry out at least monthly external reconciliations and asset checks, investigate discrepancies and shortfalls without delay, assign a senior manager with operational oversight and obtain an annual audit report. The due diligence regime would have a 12-month implementation period, while the Pension Scheme Money and Assets regime would have a two-year implementation period with a further year available where firms need more time to address dependencies on third-party data. The consultation closes on 24 August 2026, and the FCA aims to publish a policy statement and final Handbook text in the first half of 2027. It also proposes to retire its 2013 non-Handbook SIPP due diligence guidance.
Financial Conduct Authority2026-06-17
Financial Conduct Authority launches consultation on stricter SIPP due diligence and pension asset safeguarding rules
The Financial Conduct Authority is consulting on new SIPP rules that would make due diligence requirements explicit and create a new Pension Scheme Money and Assets regime for structures using unauthorised trustees. The proposals would require stronger checks on third parties and investments, more detailed record-keeping and reconciliations, and annual audits for firms outside the existing client assets regime. Responses are due by 24 August 2026, with final rules targeted for the first half of 2027.