Final SIPP rules vs my predictions
With the final rules issued for SIPP capital adequacy, I have revisited the predictions I made two months ago, and scored myself a generous 4.75 out of 8 (that’s just under 60% – probably a fail […]
Tag Archives: Capital Adequacy
The most “popular” headscratchers …
We ordered the headscratchers so that those higher up on the list are of most importance (some of the latter ones were practical issues, which are important but could have […]
AMPS Response to CP12/33
20130221 AMPS Response to CP12x33 This is what I have been working on for the last few days/weeks/months. Andrew
AMPS alternative methods for SIPP Capital Adequacy
The AMPS alternative approaches to SIPP capital adequacy. We are presenting two options, each with the same capital surcharge but with a different initial capital requirement. Each with a Minimum […]
#12 Monitoring assets held within portfolios
Number 12 in a series of headscratchers about SIPP capital adequacy proposals It could be difficult for a SIPP operator to determine the percentage of plans with Non-Standard Assets where […]
#11 Selecting the valuation date for AUA
Number 11 in a series of headscratchers about SIPP capital adequacy proposals If valuations have to be valid as at 31 December each year, there will be a bottle-neck of […]
#10 The simple formula may not be so simple to verify
Number 10 in a series of headscratchers about SIPP capital adequacy proposals The value of an asset (most notably Non-Standard Assets) may be subjective. Presumably SIPP operators will need to […]
#9 Capital Requirement will be lower at times where there is a higher risk of consumer harm
Number 9 in a series of headscratchers about SIPP capital adequacy proposals Financial pressure may cause a SIPP operator to exit the market. This financial pressure may be as a […]
#8 Misalignment with SIPP operator charging structures
Number 8 in a series of headscratchers about SIPP capital adequacy proposals The majority of SIPP operators have a business model predicated on offering an efficient and value for money administration […]
#7 Misalignment of interests between SIPP operators and consumers regarding asset valuations
Number 7 in a series of headscratchers about SIPP capital adequacy proposals The AUA test introduces a conflict of interest between the SIPP operator (who would favour a lower value of […]
