Personal pensions to be regulated

27 March 2006
The government has announced that it will require operators of personal pension schemes to be regulated by the Financial Services Authority (FSA).

The Treasury has plumped for "option three" of the four set out in its consultation paper on the eligibility for establishing pension schemes.

From April 2007, operators of personal pension schemes, including Self Invested Personal Pension schemes (SIPPs) will have to be registered with the FSA.

The change will be effected by amendments to the Financial Services and Markets Act Regulated Activities Order 2001 and the Finance Act 2004, to regulate those engaged in "establishing, operating or winding up a personal pension scheme".

The decision has been reached following consultations with the industry, which was broadly supportive of this approach.

The FSA will begin consultations on the details of the new arrangements in April.

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