FSA warns advisers over UCIS in SIPPs

The Financial Services Authority (FSA) has issued a warning to advisers who recommend that clients invest in unregulated collective investment schemes in their self-invested personal pensions (SIPPs).

The alert states it has come to the FSA's attention that some financial advisers are giving advice to clients on pension transfers or pension switches without assessing the advantages and disadvantages of investments proposed to be held in the new pension. In particular, the FSA said it has seen financial advisers moving clients' retirement savings to SIPPs that invest wholly or primarily in high risk, often highly illiquid unregulated investments, such as overseas property, store pods, forestry and film schemes. The FSA is investigating a number of firms and has secured a variation o...