The ABI and AMPS, the Association of Member Directed Pension Schemes, have launched new Good Practice Guidance for Self Invested Personal Pension (SIPP) providers.
The guidance gives providers examples of best practice in writing customer and adviser literature, to ensure that the types of SIPP, their features and, importantly, their charging structures are described clearly and accurately.
Maggie Craig, the ABI’s Acting Director General, said: “With SIPPs becoming an increasingly important part of the pensions landscape, it is vital that advisers and consumers fully understand what these contracts do, who they are appropriate for and how much they cost.
“The guidance gives model definitions of the most important terminology used within SIPPs. It also states that providers should clearly set out all the charges associated with SIPPs, in a simple menu format. The language used throughout customer literature should be clear and simple, and be in plain English.
“This guidance will help to ensure that the product is understood better by customers and advisers and that it is targeted at those for whom it is an appropriate long-term savings vehicle.”
Martin Cadman, AMPS Committee member, said: “This guidance has been agreed following extensive consultation with AMPS, the ABI and other interested parties. AMPS, the ABI and all our members are dedicated to improving the clarity of customer literature and the overall transparency of SIPPs. We want to ensure that consumers and advisers understand what SIPPs do, who they are appropriate for and how much they cost. We believe that this guidance goes a long way towards achieving this and we will be working with our members to implement it in full.”
