SIPPs are usually set up under trust so that assets are held on your behalf and for your benefit. A pension member works with three sets of people in running their SIPP: Provider - Pension rules require a SIPP provider for each SIPP so that the pension qualifies for preferential tax treatment. Administrators - SIPP administrators carry out the day to day activities of the SIPP impleming the pension member’s instructions, keeping records and completing HMRC returns.. Trustees - The SIPP trustees hold the investments on the member’s behalf and ensure that the SIPP is operated within HMRC rules. SIPPs written under trust mean that the assets are ring fenced and cannot be affected by the financial standing of the SIPP administrator. Compare this with a traditional insurance company pension and your pension could be far safer in a SIPP. SIPPs are regulated by the Financial Services Authority however the investments that you chose to hold in your SIPP may not be. The Financial Services Compensation Scheme may or may not apply to the investments you hold.