Pension Schemes - Frequently Asked Questions

Self Invested Personal Pensions (SIPPs)

Q When are shares in an Open-Ended Investment Company (OEIC) a permitted SIPP Investment?

A. If they satisfy at least one of the following conditions:

a) The shares are listed on a recognised stock exchange
b) The OEIC is incorporated in the UK and is authorised by the Financial Services Authority (FSA)
c) The OEIC is constituted in a European Economic Area (EEA) member state, is duly authorised by the appropriate authorities in that member state and is an FSA recognised scheme under Section 264 of
Financial Services and Markets Act 2000.
d) The OEIC is constituted outside the UK and EEA but is managed in a designated country or territory and the authorisation requirements under Section 270 FSMA 2000 are satisfied.

Q What do I do if I am not sure the OEIC meets the required conditions?

A. You should ask the OEIC fund manager to confirm that it satisfies one of the conditions above.

Q Is a hedge fund a permitted SIPP investment?

A. Generally a hedge fund is a company set up outside the UK. It will qualify if it satisfies one of the OEIC conditions set out in (a), (c) or (d) above.

Q How does the definition of deposit-taker apply to non-UK banks?

A. The definition basically includes EEA banks, and any non-EEA banks that have a UK presence. More specifically it is those non-EEA banks which have a permission under Part IV FSMA 2000 that includes permission to accept deposits which are relevant deposits. Relevant deposits are broadly deposits received in a UK branch of a bank from a UK resident individual.
Since 1 October 2002 deposit-taker has been extended to include securities houses that are persons authorised for the purposes of FSMA 2000 and whose business consists wholly or mainly of dealing in financial instruments as a principal.
In the case of all these deposit-takers it is the institution that is recognised as a deposit-taker. Once an institution is so recognised every one of its branches or offices anywhere in the world is, for the purposes of the SIPP Regulations, SI 117/2001, permitted to accept deposits from a SIPP.

Q What if I am not sure a non UK / EEA bank qualifies?

A. You should ask the bank to confirm it meets the criteria above.

   
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