FCA consults on new SIPP rules: What CP26/20 means for you
The FCA published a new consultation paper in June 2026, CP26/20, "Adapting our rules for a changing market: self-invested personal pensions".
SIPPs are a significant part of the UK pensions landscape.
Around one-third of all FCA-authorised defined contribution pension schemes are SIPPs, with assets under administration reaching approximately £567 billion across 5.3 million consumers. It's easy to see why the FCA keeps a close eye on this market.
SIPPs offer members a wide choice of investments and considerable flexibility, and that flexibility is precisely why strong consumer protections matter.
What the FCA is proposing
The FCA has been clear about its intent: to "strengthen consumer protections in areas of the market where risks may be more likely to arise." CP26/20 proposes two sets of new rules for SIPP operators:
1. Due diligence requirements
The FCA is introducing explicit, risk-based due diligence obligations on SIPP operators regarding the third parties they work with and the assets accepted into a SIPP. This includes identity verification of introducers and other third parties (such as IFAs and discretionary investment managers), requirements for formal contractual arrangements, and ongoing monitoring of scheme assets managed by those third parties.
2. Handling pension scheme money and assets
The second set of rules introduces a new Pension Scheme Money and Assets (PSM&A) regime for firms that use unauthorised trustees to hold or receive scheme money and assets. A complete audit trail must be maintained so that the regulator (or an insolvency practitioner) can accurately trace the movement of assets at any point.
The consultation closes on 24 August 2026, with final rules expected in 2027 and a minimum 12-month implementation period to follow for the due diligence rules, and a minimum 2 years (extendable to 3) for the PSM&A regime.
What this means for Yorsipp – and for you
Compliance has always been central to how we operate at Yorsipp and we are a registered corporate member of AMPS (the Association of Member-Directed Pension Schemes). We already apply rigorous due diligence to the introducers and assets we work with, and maintaining full and accurate records is simply part of how we do business.
As a result, CP26/20 is unlikely to require significant change on our part. That said, we will be reviewing the proposals carefully as they develop and will make changes where appropriate to ensure we continue to exceed the standards the FCA expects.
Leading our compliance work is Bryan Dickson, Yorsipp’s Compliance Manager. Bryan has over 20 years of financial services experience, having worked within some of the UK's largest wealth management and financial services organisations, as well as in the Quality Assurance team at the Financial Ombudsman Service. His expertise means our advisers and their clients can be confident that Yorsipp's practices are always aligned with the highest standards.
CP26/20 is still at consultation stage – no final rules yet. But we believe in being proactive, and we want our advisers to know that we are monitoring this closely. If the proposed rules become final, Yorsipp will be ready.
If you have any questions about CP26/20 or what it might mean for your clients, please don't hesitate to get in touch with our team.
The FCA Consultation paper can be found here.
