FundsNetwork carves out 6.5 per cent share of UK SIPP market

In the first year since launching its SIPP, Fidelity FundsNetwork saw its share of the UK SIPP market jump to 6.5 per cent, while it also secured a 4.6 per cent share of the UK personal pension market. In the run up to the end of the first tax year since A-Day, sales of the FundsNetwork SIPP are continuing to grow strongly, with the average case size in 2007 hitting £170K.

The sales figures echo the findings from recent research conducted by FundsNetwork which reveals that the advent of A-Day almost a year ago, has led to a significant increase in new SIPP business, with one in four advisers reporting a sales uplift of 60 per cent or more.

Further findings from the adviser research show that less than one in ten advisers have new pensions clients who have not purchased a SIPP since last April when the new provisions were announced, which suggests that SIPPs could now be a mainstream product for the mass affluent, rather than merely for a niche, high net worth market.

David Dalton-Brown, Head of Fidelity FundsNetwork, said:“One year on from what was arguably the single biggest shake-up of the previously antiquated pensions system in the UK, and the benefits are becoming apparent. Advisers and their clients have taken to SIPPs as a way of bringing an enhanced level of flexibility and choice to their retirement planning strategies, and are clearly taking advantage of the benefits of increased transparency and simplification.”

The report also reveals that the principles of A-Day – simplification and flexibility in the moves towards more holistic retirement planning - have also been well-received by advisers. Nine in ten (90 per cent) feel that the ability to consolidate existing legacy pensions within a SIPP is beneficial as it allows advisers and their clients to view all the assets in one place, making it easier to advise on effective strategies for overall retirement provision. A further 54 per cent feel that consolidation beings a level of clarity and transparency that was not previously there prior to A-Day.

Dalton-Brown adds:“A-Day was designed to encourage a more holistic and cohesive method of retirement planning and it appears from our survey that the ability to consolidate existing pension plans under one roof is just one of the key advantages for advisers. By holding all assets within a SIPP, it’s now possible for them to make more effective decisions on creating and maintaining a decent level of income in later years, which is an absolutely crucial part of any adviser’s business.”