What happened?
A recent Financial Ombudsman Service decision has drawn attention to the risks of DIY SIPP arrangements, particularly for customers displaying signs of vulnerability such as gambling addiction. Writing in FT Adviser, TCC’s Head of Advisory Practice, Gary Maude, set out firms’ safeguarding obligations towards customers taking a DIY approach in the Consumer Duty era.
Why does it matter?
Consumer Duty does not treat a self-directed or execution-only proposition as a reason to step back from identifying and supporting vulnerable customers. The Ombudsman’s decision is a reminder that firms retain safeguarding obligations even where customers are making their own choices.
Supporting sources
Frequently asked questions
Does Consumer Duty apply to DIY or execution-only SIPP customers?
Yes. Consumer Duty applies regardless of whether a customer is advised or self-directed, and firms retain obligations to identify and support customers showing signs of vulnerability.
What risk did the Financial Ombudsman Service decision highlight?
It highlighted the risks of DIY SIPP arrangements for customers displaying signs of vulnerability, such as gambling addiction, and firms’ safeguarding obligations towards them.
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