SIPPs: Consolidation, charges and clarity, a look back over 2016

Straight open road to upcoming 2017 at idyllic sunsetThe Self-Invested Personal Pension market has seen an unprecedented year of change, and we still have two months to go! Three key themes have emerged over the past 10 months; consolidation, charges and clarity. Not all the changes have been positive for consumers, with prices rising and competition falling. Let’s look at all three in more detail. Consolidation – on the rise The year started with Curtis Banks acquiring Suffolk Life in one of the largest ever deals of its type. The pace of consolidation hasn't slowed ...

SIPPs: Are SIPP cash investors treated as second class savers?

First ClassDespite interest rates remaining stubbornly low, many SIPP investors still like to hold significant amounts of cash on deposit. We are regularly asked why rates on SIPP deposit accounts are lower than for personal savers. We thought we’d look into this in more detail and ask “are SIPP cash investors second class savers, or is this a myth?” Mandated SIPP bank accounts The first problem SIPP investors have to solve is how to get the best possible interest rate from any short term cash ...

SIPPs: FCA quizzes SIPP providers

Question mark 2_istockThe FCA (Financial Conduct Authority) has asked SIPP (Self-Invested Personal Pension) providers a series of further questions as it finalises the new capital adequacy rules. According to reports in FTAdviser, the new regulator, who has recently taken over from the FSA (Financial Services Authority), has requested further information from SIPP providers, including details of the types of assets the SIPP provider will allow, the amount held in each type of investment, as well as details of the level of ...

SIPPs: FSA proposes increased disclosure on SIPP bank accounts

The FSA has proposed that SIPP providers will in future have to disclose any commission or interest they receive from the funds of SIPP members. SIPP bank accounts Every SIPP has a bank account, which is used to hold cash, receive income in from investments and also make payments out. The provider of the SIPP bank account is usually, although not always, mandated by the SIPP provider and interest rates are generally below Bank of England Base Rate, currently 0.5%. There are even some SIPP providers  mandating bank accounts paying zero interest. Currently some SIPP providers receive interest from the banks ...