SIPP firms slated for poor IFA service

SIPP providers are unaware of widespread dissatisfaction among their IFA customers, according to Investors in Customers (IIC).

Research among IFAs suggests many feel service standards in the SIPP sector fail to live up to expectations.

Analysis of customer perceptions by IIC found SIPP providers got an average rating of 7.15 for customer service, compared to an average for all sectors of 7.27.

IIC says SIPP providers must improve their service propositions for both business and regulatory reasons.

Neil Craig, managing director of IIC, says: "Quality of service is likely to remain a key differentiator for SIPP providers and the TCF culture being promoted by the FSA is fundamental to that.

"As has been seen from the experience of those SIPP providers where operational difficulties have led to loss of business, the cost of getting it wrong is high."

IIC says many SIPP providers are focussing solely on the technical aspect of their products, and have failed to assess the other needs of their customers.