If you are a US citizen, Green Card holder, or US tax resident with a SIPP held at Interactive Investor (ii), your account is being closed. Interactive Investor has confirmed it is exiting the US resident market entirely, and all affected customers must transfer their SIPP to a compliant alternative provider before an individually assigned cut-off date.
This guide explains why this is happening, what your options are, and, critically, how to transfer your UK pension in a way that is fully compliant under both UK and US law.
Why Is Interactive Investor Closing SIPP Accounts for US Residents?
Interactive Investor has cited the growing complexity of regulatory, tax, and reporting obligations that arise from servicing US tax residents under a UK-only FCA authorisation. US citizens and tax residents are subject to worldwide reporting requirements under FATCA (Foreign Account Tax Compliance Act), FBAR (Report of Foreign Bank and Financial Accounts), and various IRS disclosure obligations.
For a UK-regulated platform, maintaining the compliance infrastructure to service a relatively small number of US-based clients is no longer commercially viable. This decision is not unique to ii; Hargreaves Lansdown, Fidelity UK, and Vanguard UK all made the same decision years ago.
There are also potential issues around US SEC Broker-Dealer registration rules, as platforms that are not registered but allow trading in marketable securities to US Residents without the oversight of an SEC-authorized adviser or investment manager have been getting prompted to stop offering services by the SEC in recent years. The most recent being MyExpatSIPP, which no longer accepts new business from US Residents.
What is notable is not that Interactive Investor is making this change, but that they continued to service US residents for as long as they did. The regulatory direction of travel has been clear for over a decade.
What Options Has Interactive Investor Given Affected Customers?
Interactive Investor’s notification to affected customers outlines four options:
- Transfer your SIPP assets to another provider, the correct route for most people
- Withdraw assets to your own custody (e.g. CREST certificates)
- Sell holdings and withdraw as cash
- Donate small or valueless holdings to charity
For most SIPP holders, options 2, 3, and 4 are not appropriate. Withdrawing cash from a SIPP before the minimum pension age, currently 55, rising to 57 in 2028, triggers significant UK tax charges, including an unauthorised payments surcharge of up to 55%. Taking funds outside the pension wrapper permanently removes their tax-advantaged status and can cause irreversible damage to your long-term retirement planning.
For the vast majority of US residents affected, the correct route is a compliant SIPP-to-SIPP transfer.
Where Can US Residents Transfer Their Interactive Investor SIPP?
This is where many people hit a wall. The same pressures that prompted ii to exit the US resident market have already led most major UK pension platforms to do the same. You cannot transfer your ii SIPP to Hargreaves Lansdown, Vanguard, or Fidelity, they will decline your application.
The Compliant Solution: An International SIPP
An International SIPP is a fully UK-regulated, HMRC-registered pension, structurally identical to a standard SIPP in terms of tax treatment, contribution rules, and retirement benefits. The key difference is that it is specifically structured to accept and service non-UK residents, and the investment advice element is delivered through an SEC-registered investment adviser.
This dual-regulated structure, FCA-authorised in the UK and SEC-registered in the US, is not a commercial preference. It is a regulatory requirement for fully compliant advice to a US person on their investments. To our knowledge, there are currently no compliant self-invest options for US residents within a UK SIPP framework.
As a US Resident, your advice must be provided by an SEC-authorized adviser. Whilst FCA authorised advisers can advise US Residents, it can only be incidentally, with a maximum of 15 clients, no place of business, nor any marketing or solicitation of US Residents, amongst other restrictions. Long story short, if anyone is offering to help you who is not SEC authorised and provides you with SEC-regulated advice, then they are likely breaking the law, and the advice will be in breach of their PI cover. It will also likely mean the new advised platform is something unsuitable, like AJ Bell or Transact, which have the same issues that led to this Interactive Investors situation.
We have little doubt that we will be writing a blog on AJ Bell/Transact that mirrors this one in the not-too-distant future.
What Happens If You Miss Your Interactive Investor Deadline?
If you take no action before your cut-off date, Interactive Investor will begin restricting your account. Based on actions taken by other platforms in similar situations, this is likely to mean:
- Loss of ability to make further pension contributions
- Loss of ability to buy new assets, rebalance, or manage your portfolio
- Eventual forced liquidation or transfer of holdings at ii’s discretion, on ii’s timeline
A forced sale creates unplanned tax events. It removes your control over the timing of capital gains crystallisation, eliminates your ability to manage foreign exchange rates on any currency conversion, and significantly complicates both your UK and US tax reporting for that year.
The cost of inaction is almost certainly higher than the effort of acting now.
Who Should Advise US Residents on a SIPP Transfer?
This is one of the most important questions to get right, and one of the most commonly misunderstood.
A standard UK FCA-regulated financial adviser, even one who markets themselves to expats, cannot provide fully compliant, insured advice to a US tax resident without also holding SEC registration. FCA authorisation covers UK regulatory requirements. It does not extend to the US securities laws that govern advice given to US persons.
There are limited exemptions, but they are narrow, and any adviser actively marketing to US residents is expressly prohibited from relying on them. Using a UK-only adviser for your SIPP transfer creates a compliance gap on the US side that could expose you to problems with the IRS and undermine your legal protections as a client. It can also cause the new platform to engage in the same activity that led to the current issues with Interactive Investor.
You need an adviser who is:
- SEC-registered in the United States, covering investment advice to US persons
- Experienced specifically in cross-border UK/US pension and financial planning
This combination is rare. But it is the only fully compliant standard for your situation.
Beyond the Transfer: Wider Planning for US Residents With UK Pensions
If the ii deadline has brought you here, there is a good chance your SIPP is not the only area of your financial life that needs attention. US residents with UK assets regularly face a range of cross-border planning challenges that require specialist expertise on both sides of the Atlantic. Common issues include:
- UK State Pension entitlement and whether voluntary National Insurance contributions make financial sense
- US Social Security strategy and the impact of UK pension income under the Windfall Elimination Provision (WEP)
- IRA and 401(k) coordination alongside UK pension income in retirement
- Foreign Tax Credit planning and US/UK tax treaty election decisions to avoid double taxation
- Inheritance and estate planning across two tax jurisdictions
- PFIC exposure within your existing investment holdings, a common and often overlooked issue for US persons holding UK-domiciled funds such as OEICs, unit trusts, and non-US ETFs
In many respects, the Interactive Investor situation has created a valuable moment for affected clients to properly structure their UK pension assets and to engage the right adviser, rather than simply the most convenient one.
Action Steps for Interactive Investor SIPP Holders
- Find your individual cut-off date. Check your ii correspondence immediately.
- Do not withdraw cash from your SIPP. Premature withdrawals trigger significant UK tax charges and permanently remove assets from the pension wrapper. Take specialist advice before doing anything.
- Engage an adviser who is SEC-registered. This is the minimum standard for fully compliant advice as a US tax resident. UK-only advisers cannot meet this bar.
- Act early. Transfers typically take 4–12 weeks, depending on holdings’ complexity and whether an in-specie transfer is possible. Starting late increases the risk of ii forcing a liquidation on their terms.
Cameron James: FCA-Authorised & SEC-Registered Advisers for US Residents
At Cameron James, our advisers are regulated on both sides of the Atlantic, FCA-authorised in the UK and operating under SEC registration in the United States. We specialise exclusively in cross-border UK/US financial planning, including International SIPP transfers, PFIC review, pension income coordination, and cross-border estate planning.
We offer free initial consultations for US residents affected by the Interactive Investor closure. If you have an ii SIPP and need to understand your options before your deadline, get in touch today.
→ Book a free consultation with a Cameron James adviser
Frequently Asked Questions
Can I transfer my Interactive Investor SIPP to another UK platform?
Most major UK platforms, including Hargreaves Lansdown, Fidelity, and Vanguard, no longer accept non-UK residents. As a US resident, the only compliant route is an International SIPP, arranged via an adviser who is both FCA-authorised and SEC-registered.
Is a SIPP transfer a taxable event?
A direct SIPP-to-SIPP transfer is not a taxable event in the UK. However, if holdings must be liquidated before transfer because the receiving platform cannot accept certain assets in-specie, careful planning around timing and reporting is required. Your adviser should guide you through this.
What is an International SIPP?
An International SIPP is a UK-regulated, HMRC-registered pension specifically structured to accept and service non-UK residents. It operates under FCA regulation in the UK and, when paired with an SEC-registered investment adviser, provides a fully compliant solution for US tax residents.
How long does a SIPP transfer take?
Typically between 4 and 12 weeks, depending on holdings complexity and whether an in-specie transfer is possible. Starting the process early is essential to avoid being subject to ii’s forced transfer timeline.
Do I need an SEC-registered adviser for a SIPP transfer?
Yes, if you are a US tax resident. An FCA-authorised UK adviser alone cannot provide fully compliant investment advice to a US person under US securities law. SEC registration is a regulatory requirement, not a preference, and is what ensures the advice is legally sound on the US side.
Disclaimer: This article is intended for informational purposes only and does not constitute investment, legal, or tax advice. Tax laws are complex and vary by individual circumstance. Cameron James does not offer tax advice. Please consult a qualified tax professional regarding your specific situation. Advisory services in the United States are offered through Beacon Global Advisor Network, LLC, a registered investment adviser with the Securities & Exchange Commission. Beacon Global Advisor Network, LLC and Cameron James USA are not affiliated.
