Financial Services Reforms – Takeaways for SIPP and SSAS providers

HMT published the outcome of its 2024 call for evidence, the Financial Services Growth and Competitiveness Strategy as part of the Leeds Reforms. It sets out the government’s 10 year plan to drive growth and competitiveness of financial services in the UK through creating a more adaptive and proportionate regulatory environment. It recognises that “in recent years the UK has been good at regulating for risk but not for growth, and as a result there are some areas where the UK’s approach places a higher burden on firms.” The Leeds Reforms are aimed at adapting the UK FS sector to enable growth across the UK economy “so that the benefits of a thriving and growing financial services sector can be realised for people all over Britain”.

The government’s Growth and Competitiveness Strategy emphasises its commitment to reforming wholesale markets, so it is easier and cheaper for companies to raise capital in UK public markets for onwards investment. 

Through this opening up of the market, the government continues to build on its previous reforms which enable and encourage pension providers to embrace UK investment opportunities. For example, the announcement of the British Growth Partnership in October 2024 which encourages pension funds and providers to invest more in high-growth and innovative UK companies. SSASs continue to be a helpful vehicle for funding and investing in UK SMEs due to their exemption from restrictions on employer-related investments.

The government is keen to build a healthy investment culture within the UK and recognises that perceived risks and complexities are one of the obstacles presently deterring many consumers from embracing investment. The government and FCA will support an industry-led move away from stringent risk warnings, towards informing about the risks and benefits of investing instead. Pension providers should be prepared to support consumers on this journey. SSAS professional trustees need to be clear on their role and understand their duties in relation to trustees’ investment proposals. 

As pension providers are encouraged to make available different types of investment, it becomes increasingly important that customers are supported to make well-informed decisions about their investments and pensions. The proposed introduction of targeted support (see FCA’s CP25/17) will help SIPP operators to provide more tailored support to groups of customers with similar characteristics. The consultation paper also requests feedback on the support that trustees of occupational pension schemes, such as SSAS professional trustees, may wish to give to members, and notes that the FCA will work closely with the Pensions Regulator to provide guidance to trustees on when the provision of support might involve trustees undertaking a regulated activity.

Targeted support aims to decrease the gap between information and existing forms of individualised investment advice. It is intended to help consumers better understand their options and empower them to make informed decisions and achieve better outcomes. The consultation on the proposed rules closes on 29 August 2025. 

Regulatory burdens on SIPP operators will be streamlined and simplified:

• Consultations have been published by HMT, the FCA and the PRA on reform to the Senior Managers & Certification Regime with a view to reducing delay and improving flexibility and transparency.
• The government is consulting on cross-cutting changes to the overarching regulatory framework, including reviewing the scope of consumer duty and shortening FCA and PRA application deadlines for new firms and senior managers.
• The Financial Ombudsman Service (FOS) and financial redress system will be reformed.