CP26/20: Adapting our rules for a changing market: self-invested personal pensions

Read CP 26/20 (PDF)[1] 

Why we are consulting

Self-invested personal pensions (SIPPs) give consumers greater control and flexibility over their retirement savings, and the market has grown substantially - assets under administration (AUA) reached approximately £567bn across 5.3 million consumers in 2024. 

We're proposing rules in 2 areas: 

• due diligence requirements to reduce the risk of scams and fraud, and 
• a new Pension Scheme Money and Assets (PSM&A) regime to ensure firms protect and accurately record pension scheme money and assets where they use unauthorised trustees. 

These changes aim to raise standards consistently across the market, protect consumers, and support confidence and sustainable growth in SIPPs.

Who this is for

This consultation is primarily relevant to:

• all firms that operate and provide personal pension products (both accumulation and decumulation) 
• investment platform providers 
• firms offering discretionary investment services
• stockbrokers
• platforms
• third-party custodians
• trustees of defined contribution occupational pension schemes  
• auditors
• insolvency practitioners
• trade bodies for regulated firms 

Next steps

Online response form[2] 

We welcome views on our proposals by 24 August 2026. 

Provide your feedback via our response form[2] or in writing to:

Pensions Policy
Financial Conduct Authority
12 Endeavour Square
London E20 1JN

Email: [email protected]

After the consultation closes, we'll analyse responses and aim to publish a Policy Statement setting out our final rules.

Background

SIPPs were introduced in 1989 to give investors more control over their pension investments. The market has grown significantly since then. By 2024, SIPPs accounted for around a third of assets in FCA-regulated defined contribution (DC) pensions.

In December 2024, we published Discussion Paper 24/3 (DP24/3), Pensions: Adapting our requirements for a changing market[3], seeking views on our regulatory framework for SIPPs. We received responses from firms, consumer bodies and trade associations, and have continued to engage with stakeholders since.

Our proposals build on this work and focus on 2 areas where we see the greatest risk of harm. Inadequate due diligence, where weak processes can leave consumers vulnerable to scams or fraud. Also, the handling of pension scheme money and assets in structures using unauthorised trustees, where gaps in the current rules can weaken consumer protection.

These proposals support our priorities of strengthening trust and securing good consumer outcomes, as set out in our Consumer Investments Regulatory Priorities Report. We also consider them consistent with our secondary objective to advance the international competitiveness and growth of the UK financial sector.

Clear minimum standards help support a level playing field, reduce unnecessary risk, and build the consumer confidence that allows the SIPP market to grow sustainably.