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IFA secures clarification from FSCS over Sipp deposit cover

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IFA secures clarification from FSCS over Sipp deposit cover

The FSCS has clarified that cash held in Sipp deposit accounts will be covered by the scheme up to £85,000, following a campaign from Nottingham-based IFA Investment Sense.

The firm appealed to the scheme for clearer guidance in November 2012 after a client complained that the FSCS website was unclear.

The FSCS said Sipp deposits were covered by the scheme, as long as the deposit taking institution had an FSA approved UK banking licence, and the Sipp investor did not hold additional personal savings with the same deposit taker that would cumulatively exceed the £85,000 limit.

Phillip Bray, marketing manager at Investment Sense, said: ‘People were asking us about the FSCS coverage and wanted to know whether the accounts they were investing in were covered by the FSCS in the event that a bank or building society went pop.’

‘We looked at the FSCS website and it didn’t mention anything about Sipp deposit accounts, although it does mention personal accounts and accounts in trust’

‘I’m led to believe that Association of Member-Directed Pension Schemes got clarification from the FSCS during the credit crunch, 2007-8, but I’ve not seen anything recently.’

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