UK regulator the Financial Conduct Authority on Monday launched a consultation proposing clearer due diligence standards and stronger requirements for how self-invested personal pension (SIPP) operators handle scheme money and assets.
The FCA said it has found cases of poor due diligence, weak record keeping and gaps in how firms protect money and assets. The proposals are designed to reduce the risk of consumer harm when firms fail or wind down.
In practical terms, the regulator wants to set a firmer benchmark for how SIPP operators vet investments, document decisions and safeguard pension assets. The FCA said the proposals complement its Consumer Duty by making clear what good practice looks like.
“SIPPs provide consumers with flexibility and choice. Many firms are doing the right thing, but we want to help consumers invest with greater confidence by ensuring standards are consistent,” said Charlotte Clark, director of cross-cutting policy and strategy at the FCA.
The consultation paper, CP26/20: Adapting our rules for a changing market: self-invested personal pensions, closes on 24 August 2026.
The consultation sits within the FCA’s broader pensions modernisation programme and follows its earlier discussion paper, DP24/3, on adapting pension requirements for a changing market.
