Small SIPPS Are Failing Their Customers, Claim New Surveys

The SIPP industry has lost the personal touch and faces a challenge to raise standards for customers, according to an independent review.

Quality standards assessor Investor In Customers (IIC) claims client relationships are not at the heart of many SIPP provider’s services in a 23-page sector report.

“Advisers are concerned about administration standards,” said the report. “They are often poor and the adviser community is challenging SIPP providers to raise standards.

“While the administration concerns pick up issues like poor documentation that fail to engage with clients, and some of the well-publicised issues around cash and deposits, it is as much to do with the attitudes of the servicing staff.”

Neil Craig, managing director of IIC, said the survey had been carried out on the back of a recent Financial Standards Authority (FSA) report on small SIPP providers.

Advisors have worries about safety of client money in small SIPPS

He said the IIC finding reinforced those of the FSA, who wrote to more than 60 small SIPP providers at the end of last year warning them to tighten up their administration and show more transparency about hidden charges and conditions.

Mr Craig said: “It may well be that many of those problems have been brought about by the failure of those businesses to engage with their customers effectively and understand their needs, all aspects of customer relationships that IIC explores.”

Meanwhile, research by a SIPP provider found a number of advisers were concerned by provider risk management procedures and safety of clients’ funds.

John Moret, marketing director at Suffolk Life, said: “Investing in a SIPP is an important decision, and one that should have considerable longevity.

“It is therefore crucial that advisers and their clients have confidence in their SIPP provider, and advisers need reassuring that they are recommending a provider who will act with transparency, integrity and due care.”

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