Standard Life warns against the pension mis-selling floodgates
From next April the range of items that can be considered pension investments is to widen greatly as the UK government introduces new legislation to encourage greater personal pension provision. From April 2006 a range of material items, including valuable possessions such as valuable cars or paintings, can be placed as a pension contribution. Furthermore predictions suggest that property with be one of the most popular assets to be used under the new rules. However, Standard Life and fellow UK insurance giant Norwich Union have called on the authorities to act now to prevent the likely fresh outbreak of mis-selling. The insurers are concerned that the new rules mean many of those selling assets for self-invested personal pension schemes (SIPPs) will be under-regulated. Standard Life and Norwich Union want rules to be put in place to regulate the use of advertisements that promote assets such as property as pension investments to avoid mis-selling. Currently there is no requirement for SIPP advisors to be authorized with the FSA.