#6 Large number of small plans vs small number of large plans
Number 6 in a series of headscratchers about SIPP capital adequacy proposals A SIPP operator that has 10 clients with an average fund size of £400,000 will have the same […]
#5 Divergence from cost of wind-down as regime beds in
Number 5 in a series of headscratchers about SIPP capital adequacy proposals The mismatch between the cost of winding down a SIPP and the capital requirement will drift over time […]
#4 The cost of transferring or selling an asset is not linked to the value of an asset
Number 4 in a series of headscratchers about SIPP capital adequacy proposals An investment account held at a discretionary fund manager with £10,000 in it will have the same SIPP […]
#3 Uncontrollable calls for capital lead to non-robust business models
Number 3 in a series of headscratchers about SIPP capital adequacy proposals A significant unpredicted increase in capital requirement could occur from one quarter (or year) to another which, as […]
#2 Release of capital to SIPP operator despite no change in risk of consumer harm
Number 2 in a series of headscratchers about SIPP capital adequacy proposals A SIPP operator that is stagnant (same number of SIPPs, no change in underlying investments) from one year […]
#1 Capital is not there just when it is needed
Number 1 in a series of headscratchers about SIPP capital adequacy proposals Using an extreme example to illustrate this anomaly, a SIPP operator that markets itself as allowing non-standard assets […]
A series of headscratchers
I will be taking over this blog to issue a series of headscratchers about the FSA’s proposed use of Assets Under Adminstration as a means of determining how much a […]
The headscratching is about to begin (teaser)
Watch this space. (image from freedigitalphotos.net)
If the Cap fits …
There is two weeks to go until the consultation period on SIPP Capital Adequacy closes. Under the FSA’s proposals, capital adequacy will change from in general firms having to hold […]
Illustrating The Problem
I kickstarted a debate about SIPP illustrations when a letter I wrote on behalf of AMPS in response to an FSA consultation found its way to a journalist (we distribute […]
goSIPP about SSASy things 