Novia Global CEO Steve Andrews has welcomed the FCA’s proposals to standardise practices across the self-invested personal pension (SIPP) market.
The UK regulator published a consultation earlier this week (22 June) outlining due diligence standards and suggesting stronger requirements for the handling of pension scheme money and assets.
“We believe these proposals will help strengthen confidence in the wider SIPP market, create greater consistency of standards and further support good customer outcomes,” Andrews said.
He added that alongside the recent proposal to the amber flag pension transfer rule, the initiatives should help reduce some of the unnecessary delays customers can experience when transferring their retirement savings, creating a more efficient transfer process, without compromising their protections.
“For firms that have invested in doing the right things in the right way, these proposals provide welcome clarity and consistency,” he said.
Andrews said the FCA’s consultation reflects many of the principles Novia Global views as essential to a well-functioning SIPP market, including robust oversight of investment opportunities, ongoing monitoring of third parties and strong controls around the safeguarding of client assets.
“The direction of travel set out by the FCA is closely aligned with the approach Novia Global has taken in recent years as the business has rapidly grown. We see the proposals as a welcome endorsement of the value of strong governance, robust oversight and a customer-first culture.”
Over the last few years, Novia has invested significantly in the governance, oversight and control frameworks that support its SIPP proposition, Andrews said, helping advisers and their clients invest with confidence and security. Novia Global’s UK SIPP now holds more than £1bn of client assets and supports advisers around the world.
“The trust placed in us by advisers and their clients is something we take extremely seriously,” Andrews said.
“At Novia Global, well considered principles are embedded throughout our operating model while we also adapt for change. We have long supported the objectives that sit behind the FCA’s Client Assets Sourcebook (CASS) and apply safeguarding across our business to help protect clients.
“We have always believed that protecting client money and assets should be treated as a cornerstone of our business, not simply a regulatory obligation. That philosophy underpins our approach to risk management and decision-making, supported by our Investment Committee and SIPP Operator Committee, which help ensure customer interests remain at the centre of our proposition.”
Andrews added: “As the consultation progresses, we look forward to engaging with the FCA and the wider industry to help shape a strong, trusted and sustainable future for the SIPP market.”
