If a UK-based financial adviser has recommended the IPM SIPP to you because of your US tax status, your first question should not be about the provider. It should be about the adviser. IPM SIPP Administration Limited has invested genuine effort in understanding the compliance requirements facing US-connected clients, and the IPM SIPP for US residents is, at the product level, one of the more thoughtfully built UK SIPP options available. But the rules governing whether an adviser can lawfully advise you depend entirely on where you live, and IPM does not address that gap.
This article explains what IPM offers, where the product falls short, and why the answer differs significantly depending on whether you are a US-connected person living in the UK, or a US tax resident living in the United States. It is written for the individual who has received a SIPP recommendation and wants to assess it properly before committing.
| The Point Most US Residents Miss FCA authorization and SEC registration are permissions granted under two different regulatory systems.An FCA-authorized UK adviser who advises a US resident on a UK pension is providing investment advice to a US person under US law. That activity requires SEC registration or a qualifying statutory exemption. FCA authorization carries no weight in this analysis. |
What IPM Offers US-Connected Clients
IPM SIPP Administration Limited is an FCA-authorized SIPP operator based in Stevenage. The firm has developed a more deliberate focus on US-connected clients than most UK SIPP providers, and its published guidance on this topic is more substantive than is typical in the market.
IPM identifies four groups of US-connected clients it commonly works with:
- Americans working in the UK who are building UK pension funds.
- Americans living in the US who hold existing UK pension benefits.
- British nationals with UK pensions who are living or working in the United States.
- Individuals holding a US Green Card who are subject to US tax reporting obligations.
For each of these groups, the IRS reporting obligations attached to a UK SIPP are real and non-trivial. The SIPP is reportable to the IRS. Depending on the size and structure of the pension, obligations under FBAR (FinCEN 114), Form 8938 under FATCA, and in some cases Form 3520 may apply. IPM acknowledges this clearly and has built working relationships with US tax firms to support its US-connected client base.
Where IPM Gets It Right
Mandatory US tax adviser involvement. IPM will not work with a US-connected client without a client-appointed US tax adviser in place. This is a meaningful structural safeguard, not a formality, and it is to be commended.
PFIC-aware investment management. IPM requires that investment managers used within the SIPP for US-connected clients are SEC-regulated and familiar with the relevant US tax rules. One clarification is worth making on this point: investments held inside a UK SIPP by a US person are, in the view of most cross-border tax specialists, not subject to PFIC reporting during the accumulation phase. PFIC considerations are relevant for investments held outside a UK pension structure, such as in a General Investment Account or an ISA. IPM’s reference to PFIC-aware managers reflects an understanding of the broader investment landscape, not an indication that the SIPP itself creates PFIC exposure.
USD payment capability. IPM can run SIPPs in US dollars and pay both the Pension Commencement Lump Sum and income drawdown in USD. For US residents drawing benefits, this removes a layer of currency conversion cost and complexity, and it also removes the real-world worry of being debanked by a former UK bank that no longer wants to pay out to a US account.NT tax code support. IPM assists clients in obtaining a nil tax (NT) code, allowing pension income to be paid gross under the US-UK Double Taxation Agreement. This is a practical administrative detail that most UK SIPP operators handle poorly.
The Gap IPM Does Not Address: Your Adviser’s Legal Authority to Advise You
IPM requires a “suitably authorized” financial adviser as part of its US-connected client framework. What IPM does not specify, and does not verify, is whether the adviser meets the regulatory requirements applicable in the jurisdiction where you, the client, actually live. That distinction matters enormously, and it plays out very differently depending on whether you are resident in the UK or resident in the United States.
If You Are US-Connected and Living in the UK
| This Section Is for You If: You are a US citizen, dual US-UK national, US Green Card holder, or a British national who has lived or worked in the United States, and you are currently resident in the United Kingdom. |
For US-connected individuals who are resident in the UK, the picture is more straightforward from an adviser authorization perspective, though important nuances remain.
An FCA-Authorized Adviser Can Advise You on Your UK Pension
If you live in the UK, a UK FCA-authorized financial adviser is legally permitted to advise you on your UK pension arrangements, including whether to transfer existing pensions into a SIPP, which provider to use, and how to take benefits. FCA authorization covers the provision of regulated financial advice to clients in the UK regardless of their nationality or tax status.
This means that for UK residents, IPM’s “suitably authorized” requirement is generally satisfied by a qualified, FCA-regulated adviser. The question of SEC registration does not arise in the same way it does for US residents, because the advice is being provided in the UK to a UK-resident client.
Where the US Tax Dimension Comes In
Being a UK resident does not eliminate your US tax obligations if you are a US person. A US citizen or Green Card holder living in the UK remains subject to US worldwide income reporting. Your UK SIPP will be reportable to the IRS under FBAR and FATCA. How you take benefits, the timing of withdrawals, and the treatment of lump sums under the US-UK Double Taxation Agreement all have US tax implications that a purely FCA-focused adviser may not fully understand.
The gap for UK-resident US persons is therefore not about whether the adviser is authorized to give the advice, but about whether the adviser has the cross-border knowledge to give it well. An FCA adviser who has never dealt with a US-connected client may be fully authorized and entirely unprepared for the IRS reporting implications of their advice.
| What to Check if You Are a UK Resident and US-Connected Your FCA-authorized adviser is permitted to advise you on your UK pension. You should satisfy yourself that the adviser understands the following before proceeding: • How your SIPP will be reported to the IRS under FBAR and Form 8938. • How the US-UK Double Taxation Agreement applies to pension contributions and withdrawals. • Whether the investment strategy inside the SIPP is appropriate for a US person, given the investment reporting requirements that apply outside the pension wrapper. • Whether the adviser regularly works with US tax advisers to coordinate the cross-border picture. • The adviser’s working knowledge of US-based accounts (IRA, Roth IRA, 401(k), 529, HSA) and wider cross-border US/UK planning considerations. |
A well-qualified FCA adviser with genuine cross-border experience can serve UK-resident US persons well through the IPM SIPP. The provider’s capabilities on USD payments, NT tax codes, and IRS-aware investment management are directly relevant and valuable. The risk for this group is receiving technically authorized but practically inadequate advice from an adviser who lacks cross-border expertise.
If You Are a US Resident Being Advised on a UK SIPP
| This Section Is for You If: You are a US resident, whether a US citizen, a Green Card holder, or a British national living in the United States, and you have been recommended the IPM SIPP by a financial adviser in respect of your UK pension. |
For US-resident clients, the compliance question is fundamentally different and considerably more serious. The issue is not whether the adviser knows enough about US tax. The issue is whether the adviser is legally permitted to advise you at all.
The Investment Advisers Act and the SEC Registration Requirement
Under the US Investment Advisers Act of 1940, any person who provides investment advice for compensation to a US resident must either be registered with the US Securities and Exchange Commission as an investment adviser (or via a state authority) or qualify for a specific statutory exemption. Advice on pension transfers, SIPP recommendations, and drawdown strategies constitutes investment advice within the meaning of the Act when provided to individuals subject to US jurisdiction.
An FCA-authorized UK adviser who advises you, as a US resident, on your UK pension is providing investment advice to a US person. FCA authorization is the UK regulatory permission to do this work. It is not a US regulatory permission. It carries no weight under the Investment Advisers Act. The adviser must have independent authority to advise US persons under US law, and that authority must come from either SEC registration or a qualifying exemption. The same regulatory logic applies to advice on US retirement accounts for Americans living outside the UK, which sits in parallel to any UK pension advice your adviser is providing
The Foreign Private Adviser Exemption
The most commonly cited exemption is the Foreign Private Adviser exemption under Section 203(b)(3) of the Investment Advisers Act. This allows a non-US adviser to provide advice to US persons without registering with the SEC, but only if all of the following conditions are met:
- The adviser has fewer than 15 US clients in total.
- The total value of assets under management attributable to US clients is below $25 million.
- The adviser does not hold itself out generally to the public in the United States as an investment adviser.
- The adviser does not act as an investment adviser to any registered US investment company.
This exemption is narrow and depends on ongoing compliance with each threshold. An adviser who has grown a practice serving US residents, maintains a website that is accessible and implicitly targeted at US residents, or has accumulated more than 15 US-resident clients, has almost certainly exceeded the scope of this exemption, whether or not the adviser has recognized it.
It is also important to understand what the Foreign Private Adviser exemption does not provide. It does not confer the same regulatory standing as full SEC registration. It does not require the adviser to comply with the SEC’s investment adviser conduct rules. It does not provide the client with recourse through the SEC’s enforcement framework. An adviser operating under this exemption is, by definition, operating outside formal SEC oversight.
What IPM’s Framework Does and Does Not Cover
IPM’s compliance framework for US-connected clients governs what IPM itself does as the SIPP operator. It does not assess whether the advising firm is lawfully permitted to advise the US-resident client who is receiving the recommendation.
IPM requires a US tax adviser to be in place. IPM works with SEC-registered investment managers. But IPM does not require the financial adviser who is recommending the SIPP, who is providing the transfer or switch advice, and who will be receiving ongoing fees from the client, to demonstrate SEC registration or to evidence compliance with the Foreign Private Adviser exemption. That is a significant structural gap.
| The Likely Reality for Many US Residents The majority of UK-based financial advisers who market themselves to US residents or US-connected clients are FCA-authorized only. Some will be operating within the Foreign Private Adviser exemption, knowingly or otherwise. Others will have exceeded the exemption thresholds without tracking them. Very few will be fully SEC-registered.For a US-resident client, receiving pension advice from an adviser in any of these positions means receiving advice that may have been provided without lawful authority under US securities law. The advice may still be technically sound, but the client has no regulatory recourse in the United States if it is not, and the adviser has no obligation to comply with US fiduciary conduct standards. The advice is also unlikely to be covered by the adviser’s professional indemnity insurance, given the likely regulatory breach. |
IPM Is Not Alone: The Same Gap Across Other UK SIPP Operators
This structural issue is not unique to IPM. The same gap exists with other UK SIPP operators who accept US-connected clients without requiring their adviser networks to demonstrate US regulatory standing. Dentons Pensions, for example, actively markets the Dentons SIPP as suitable for US-connected clients and positions itself as experienced in the US compliance space. Like IPM, Dentons imposes requirements on the operator side of the relationship, including working with US tax advisers and understanding IRS reporting obligations. Like IPM, Dentons does not require the advising firm to hold SEC registration or to evidence compliance with the Foreign Private Adviser exemption as a condition of introducing US-resident clients.
The pattern across UK SIPP providers in this space is consistent: the operator takes the US compliance requirements seriously at the product level, while leaving the question of whether the adviser is authorized to provide the advice in the first place entirely unaddressed. For UK-resident US-connected clients, that gap is a quality-of-advice risk. For US-resident clients, it is a legal compliance risk, and a material one.
| JONATHAN LAWS | SENIOR IFA, CAMERON JAMES “When a US resident is sent a SIPP recommendation, the conversation I end up having is rarely about the product. It is about authority. FCA authorization and SEC registration are not two labels for the same thing. They are permissions granted under two different regulatory systems. A UK adviser who is FCA authorized has the right to advise a client in the UK. That same adviser, advising a client in the United States, is operating under US securities law, and the relevant permission there comes from the SEC or a specific US State regulator. This is not a technicality. It determines whether the advice carries a fiduciary duty, whether the client has regulatory recourse, and whether the adviser’s professional indemnity insurance even responds if something goes wrong. If you are a US resident and you have been recommended the IPM SIPP, the first question to ask is not about IPM. It is about the adviser sitting across from you.” |
Summary: What the Two Audiences Need to Know
The table below summarizes the key differences between the two audiences for the IPM SIPP for US residents and US-connected persons.
| UK-Resident US-Connected Client | US-Resident Client with UK Pension |
|---|---|
| FCA-authorized adviser is legally permitted to advise you on your UK pension. | FCA authorization does not give an adviser legal authority to advise you. US securities law applies. |
| Principal risk: adviser lacks cross-border knowledge, not cross-border authorization. | Principal risk: adviser is not SEC-registered and may not qualify for the Foreign Private Adviser exemption. |
| IPM’s framework (USD payments, NT codes, US tax adviser requirement) is directly useful. | IPM’s framework is useful at the operator level but does not close the adviser authorization gap. |
| Verify your adviser’s cross-border expertise and experience with IRS reporting. | Verify your adviser’s SEC registration number or the basis for claiming the Foreign Private Adviser exemption. |
| A dual-authorized adviser (FCA and SEC) provides an additional layer of assurance but is not legally required. | Advice from a fully SEC-registered adviser, or one meeting all Foreign Private Adviser conditions, is legally required. |
| Cameron James advisers hold individual FCA and SEC authorization and advise UK-resident US-connected clients regularly. | Cameron James advisers hold SEC registration through Beacon Global Advisor Network, LLC and are authorized to advise US residents on their UK pensions. |
Questions to Ask Your Adviser Before Proceeding
Whether you are a UK resident or a US resident, the following questions are worth raising with your adviser before acting on any recommendation to use the IPM SIPP or any similar structure.
For UK-Resident US-Connected Clients
- How many US-connected or US-person clients do you currently advise?
- Do you work regularly with a US tax adviser, and will that relationship extend to coordinating on my IRS reporting obligations?
- Are you familiar with the US-UK Double Taxation Agreement, specifically Article 17, and how it applies to pension contributions, withdrawals, and lump sums for US persons?
- Do you understand the investment reporting obligations that apply to me as a US person holding investments outside the pension wrapper?
- Do you have a working knowledge of US retirement accounts and wider US financial planning considerations?
For US-Resident Clients
- Are you registered with the SEC as an investment adviser, and if so, what is your CRD registration number?
- If you are not SEC-registered, are you relying on the Foreign Private Adviser exemption under Section 203(b)(3) of the Investment Advisers Act? If so, how many US-resident clients do you currently advise, and what is the total value of assets under management attributable to those clients?
- Has a US tax adviser confirmed in writing that the proposed SIPP structure is appropriate for my specific IRS reporting position?
- Can you confirm that the investment manager proposed for the SIPP is SEC-registered and capable of providing the US tax-compliant reporting I will need for my annual return?
- If the advice you are providing is later found to be unsuitable, what regulatory recourse do I have in the United States?
- Are you authorized to advise me on my US-based assets?
An adviser who cannot answer these questions clearly and with specificity may not have the standing to be advising you, regardless of the quality of the SIPP product being recommended.
How Cameron James Approaches This
Cameron James is a cross-border financial planning firm. Our advisers hold individual FCA authorization in the UK, EEA authorization in Cyprus, and several are SEC-authorized in the United States. This means that, for both UK-resident US-connected clients and US-resident clients with UK pensions, the advice we provide sits within a regulatory framework that is compliant on both sides of the Atlantic.
For UK-resident US-connected clients, we combine FCA-regulated pension advice with a detailed understanding of IRS reporting, the US-UK Double Taxation Agreement, and the cross-border implications of pension transfers and benefit crystallization. Our advisers work alongside US tax professionals to make sure the full picture is covered.
For US-resident clients with UK pensions, our SEC registration through Beacon Global Advisor Network, LLC means that the advice is lawfully authorized under US securities law. We are not operating under an exemption with a numerical threshold. We are a registered investment adviser with full obligations under the Investment Advisers Act, including the fiduciary duty that registration carries.
When we evaluate SIPP options for US-connected clients, we assess providers, including IPM, on the basis of their actual capabilities: USD payments, NT code administration, investment manager relationships, and IRS reporting support. We do not recommend a provider because it has a dedicated US-connection page. We recommend it when the combination of provider capability and our own regulatory standing creates a structure that genuinely serves the client’s cross-border position.
| SPEAK TO A CAMERON JAMES ADVISER If you live in the United States and you have been recommended the IPM SIPP, or any UK SIPP, by a UK-based adviser, a short cross-border review will confirm whether the advice you are receiving sits on solid regulatory ground. Cameron James advisers hold individual FCA authorization and SEC registration, so the advice you receive is compliant under both regulatory frameworks. Speak to a Cameron James adviser |
Frequently Asked Questions
Can an FCA-authorized adviser recommend the IPM SIPP to a US resident?
From a UK regulatory perspective, an FCA-authorized adviser can make a recommendation regarding a UK-registered pension product. From a US regulatory perspective, advising a US resident on investment matters requires either SEC registration or compliance with a specific statutory exemption under the Investment Advisers Act. FCA authorization does not satisfy this requirement. A UK adviser recommending the IPM SIPP to a US-resident client without SEC registration, or without qualifying for the Foreign Private Adviser exemption, may be doing so without lawful authority under US securities law.
What is the difference between an FCA-authorized and an SEC-registered adviser?
FCA authorization is the UK regulatory permission to provide financial advice and conduct regulated activities in the United Kingdom. SEC registration is the US regulatory status that authorizes the provision of investment advice to US persons under the Investment Advisers Act of 1940. They are distinct requirements under different legal systems. An adviser can be FCA-authorized without any SEC standing, and the reverse is also possible. For advice to UK-resident clients, FCA authorization is what matters. For advice to US-resident clients, SEC registration or a valid exemption is additionally required.
Does the Foreign Private Adviser exemption give a UK adviser permission to advise US residents?
The Foreign Private Adviser exemption allows a non-US adviser to provide advice to a limited number of US clients without registering with the SEC. It is not a blanket permission to advise US residents. It is a threshold below which registration is not required. Advisers relying on this exemption are not subject to the same conduct obligations as registered investment advisers, and clients advised under the exemption have less regulatory recourse than clients of a registered firm. The exemption applies only if the adviser has fewer than 15 US clients and manages less than $25 million from US clients, among other conditions.
Is the IPM SIPP appropriate for US residents?
The IPM SIPP for US residents has features that are relevant and useful, including USD payment capability, NT tax code administration, mandatory involvement of a US tax adviser, and working relationships with SEC-registered investment managers. Whether it is appropriate for a specific US-resident client depends on the individual’s circumstances, the investment strategy, and whether the adviser providing the recommendation is properly authorized to do so. Given that IPM only contracts with FCA advisers, the structure is unlikely to be suitable for a US resident in most situations.
Do I need a US tax adviser as well as a financial adviser if I use the IPM SIPP?
Yes, and IPM mandates it. A US tax adviser and a financial adviser serve distinct functions. The financial adviser advises on pension structure, transfer suitability, investment strategy, and benefit planning. The US tax adviser manages IRS reporting obligations, including FBAR, Form 8938 under FATCA, and potentially Form 3520 depending on how the pension is characterized for US tax purposes. These roles should not be conflated, and both are necessary for a US-connected client holding a UK SIPP.
What is the reverse solicitation defense, and does it protect UK advisers advising US residents?
Reverse solicitation is the argument that if a US-resident client approached a UK adviser entirely on the client’s own initiative, the adviser is not holding itself out to the US public as an investment adviser and may therefore fall within the Foreign Private Adviser exemption. In practice, this is an unreliable defense. If an adviser maintains a website accessible to US persons, accepts referrals from networks that market to US expats, or regularly serves US-resident clients, it is difficult to sustain the position that the relationship was initiated entirely by the client. The SEC applies a facts-and-circumstances analysis to these questions, and the threshold for what constitutes holding oneself out to the US public is not clearly delineated in statute.
Can Cameron James advisers advise US residents on UK pensions?
Yes. All Cameron James advisers are FCA authorized, and several are SEC authorized as well, through Beacon Global Advisor Network, LLC. This means that advice provided to US-resident clients on their UK pension arrangements, including SIPP transfers, drawdown planning, and benefit crystallization, is fully authorized under the most suitable regulatory frameworks. We are not relying on the Foreign Private Adviser exemption for our US-resident client relationships.
How do I check whether a UK adviser is SEC-registered before signing anything?
The SEC maintains a public adviser register at adviserinfo.sec.gov. Each registered investment adviser has a CRD number that can be searched directly. A properly registered adviser will readily provide the number and the Form ADV on request. If an adviser hesitates, responds with FCA authorization as though it answers the question, or points only to the Foreign Private Adviser exemption without being able to articulate the thresholds, treat that as a signal to pause the conversation and get a second opinion.
Disclaimer
This article is for informational purposes only and does not constitute financial, tax, or legal advice. Always consult a qualified and regulated financial adviser before making any decisions about your pension or financial planning arrangements. Tax laws are complex and vary by individual circumstance. Cameron James does not offer tax advice.
IPM product information referenced in this article is drawn from IPM SIPP Administration Limited’s publicly available US-connected client guidance, together with Cameron James client-facing experience of the IPM SIPP platform.
References to the Dentons SIPP are drawn from Dentons Pensions Management’s publicly available US-connected client guidance.
Regulatory references to the US Investment Advisers Act of 1940 and Section 203(b)(3) are based on the Act as in force at the date of publication; readers should verify current thresholds and exemptions with a qualified US attorney or SEC-registered firm.
