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FCA stands by Sipp cap ad deadline despite delay for advisers
by Brian Cantwell on Oct 01, 2013 at 08:45
The Financial Conduct Authority (FCA) plans to stick with its end of year deadline to publish a policy paper on Sipp capital adequacy requirements despite deferring its capital rules for advisers.
Last week the regulator delayed the full introduction of adviser capital adequacy rules for the second time, after they were previously pushed back from December 2011 to 2013. The regulator also promised a ‘fundamental review’ of its approach to advisers’ capital adequacy.
The FCA said that its new competition remit, which the Financial Services Authority (FSA) did not have, was a factor in its decision to delay the rules.
‘The FCA has a competition objective that was not present under the FSA and in their current format we believe the new rules would not necessarily be consistent with that objective,’ it said.
However, a FCA spokesman said this did not mean that the time frame for new Sipp capital rules would also be pushed back.
‘We continue to consider the many detailed responses we received to CP 12/33, and it remains our intention to publish a policy statement before the end of 2013,’ he said.
The FSA first proposed a hike to capital adequacy requirements for Sipp providers in November 2012. Under those plans the absolute minimum capital a Sipp operator would have to hold was set to increase from £5,000 to £20,000.
The FSA proposed there would also be an additional requirement for providers that hold ‘non-standard’ asset types such as unregulated collective investment schemes.
A policy statement confirming the new rules was originally due in April but this has since been delayed until the end of the year.
Sipp providers said the uncertainty created by not knowing what the final rules would be meant it was difficult to make business decisions.
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