New SIPP good practice guide will improve communications to consumers and advisors

New SIPP good practice guide will improve communications to consumers and advisors

New SIPP good practice guide will improve communications to consumers and advisors

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.”

Notes for Editors

1.Enquiries to:
Jonathan French (ABI) 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling (ABI) 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain (ABI) 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle (ABI) 020 7216 7415 (Mobile: 07968 364 302)

Martin Cadman (AMPS)07710 462 195

2.The ABI / AMPS document Provider Guidance for SIPP Customer Literature is available on the ABI website

3.The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK’s capital. They are the risk managers of the UK’s economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.

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