The FCA has opened a consultation, CP26/20, proposing new due diligence standards for self-invested personal pension providers and a new regime for handling pension scheme money and assets where firms use unauthorised trustees. The SIPP market held around £567 billion in assets across 5.3 million consumers in 2024. The consultation closes on 24 August 2026.
TL;DR · LAST REVIEWED Updated 2 July 2026
- FCA consultation CP26/20 proposes new due diligence standards for SIPP providers.
- SIPP market held around £567 billion across 5.3 million consumers in 2024.
- Targets two risk areas: weak due diligence and unprotected assets held via unauthorised trustees.
- Consultation closes 24 August 2026; builds on a December 2024 discussion paper.
KEY FACTS
- The FCA's consultation is CP26/20, Adapting our rules for a changing market: self-invested personal pensions.
- SIPP assets under administration reached around £567 billion across 5.3 million consumers in 2024.
- The proposals target two specific risk areas: inadequate due diligence and gaps in protecting pension scheme money and assets.
- A new Pension Scheme Money and Assets (PSM&A) regime is proposed for firms that use unauthorised trustees.
- The consultation builds on Discussion Paper 24/3, published in December 2024.
- The consultation closes for responses on 24 August 2026.
The Financial Conduct Authority has opened a consultation on new standards for the self-invested personal pension market, aiming to close gaps that have historically left some SIPP customers exposed to poor due diligence and weakly protected assets. The consultation, CP26/20, covers a market that has grown substantially: SIPP assets under administration reached around £567 billion across 5.3 million consumers in 2024.
What the FCA is actually proposing
The proposals focus on two specific areas where the regulator says it has found the greatest risk of harm. The first is due diligence: the FCA wants clearer, more consistent standards across all SIPP operators, addressing cases it has previously found of weak processes that left consumers vulnerable to scams or fraud. The second is the handling of pension scheme money and assets, specifically in structures where a SIPP provider uses an unauthorised trustee to hold assets. The FCA is proposing a new Pension Scheme Money and Assets regime to close gaps in current rules that can leave consumer protection weaker in these arrangements.
The FCA has been clear that most SIPP providers already operate to a good standard. The stated aim of the consultation is consistency across the market rather than a response to a single new incident, closing the gap between firms already doing this well and those with weaker controls.
Why this follows on from earlier pension work
This consultation builds directly on Discussion Paper 24/3, published in December 2024, which sought industry, consumer body and trade association views on the SIPP regulatory framework more broadly. It also sits alongside the FCA's other recent pension work, including its multi-firm review of unit-linked pensions and savings, which found that some customers in legacy products receive poorer value than those in newer ones. Both pieces of work fall under the FCA's wider programme to modernise pensions and long-term savings, alongside the rollout of pensions dashboards later in 2026.
What this means if you hold a SIPP
Nothing changes immediately. This is a consultation, not a final rule, and it remains open for responses until 24 August 2026. Any resulting rule changes would follow a further policy statement after that. For anyone currently choosing between a SIPP and a managed personal pension, the consultation is a useful reminder that due diligence standards currently vary between providers, and that checking a provider's approach to safeguarding assets, particularly whether it uses unauthorised trustee structures, is a reasonable question to ask before transferring a pension.
RELATED GUIDES
DISCLAIMER
This article is editorial information, not financial advice. Kael Tripton Ltd is not authorised or regulated by the Financial Conduct Authority. Figures were correct at the last review date shown above; verify current rates and rules with the primary sources listed below before acting.
Frequently asked questions
What is the FCA proposing for SIPPs?
New due diligence standards for SIPP providers and a new regime for protecting pension scheme money and assets where firms use unauthorised trustees.
How big is the SIPP market?
SIPP assets under administration reached around £567 billion across 5.3 million consumers in 2024.
When does the consultation close?
24 August 2026. Any resulting rule changes would follow a later policy statement.
Does this change how my existing SIPP is run right now?
No, not immediately. This is a consultation stage, not a final rule change.
SOURCES
- FCA: Consults on proposals to support strong, consistent standards in the SIPP market – accessed 2 July 2026
- FCA: CP26/20 Adapting our rules for a changing market, self-invested personal pensions – accessed 2 July 2026
