Consumer Duty could see SIPP benefits, iPensions Group says

The implementation of new Consumer Duty rules is set to increase consumer retail investment with single-investment personal pensions (SIPPs), iPensions Group has found.

Research by the SIPP provider has stated that nearly half (45%) of advisers believe that the number of consumers taking out SIPPs will increase as a result of the new consumer duty rules launch, which will be implemented from the end of the month.

The new rules aim to increase consumer protection and promote fair practices in the financial services market, requiring firms to act in good faith towards retail customers, avoid foreseeable harm, and enable and support customers to pursue their financial objectives.

The research by iPensions found that nearly two in five (39%) advisers believe that the numbers of consumers taking out retail investment products will increase, while 61% believe pensions and retail investment products will benefit.

However, over one in 10 (14%) believed that consumer duty will not boost the number of retail investors, with just 4% unsure what the impact of the new rules will be.

iPensions’ research has also found that around one in eight (12%) advisers have said that they have stopped offering high risk investment as a result, with 9% withdrawing from offer defined benefit transfer advice.

Managing director at iPensions Group, Craig Cheyne said: “A key aim of the Consumer Duty regime is to increase investment in retail investment products and advisers are confident it will deliver on that.

“Pensions in general and SIPPs in particular look likely to be major beneficiaries of the new rules and advisers are also reviewing the products they will offer to customers.

“We are focused on delivering transparent service in a timely manner and our innovative technology combined with decades of experience and expertise in UK and international pensions means we can offer a secure home for advisers looking to consolidate pension funds on behalf of clients.”

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