When is a SIPP not a SIPP?

James Hay, the UK’s largest SIPP provider, today warns that certain providers are using “deferred SIPPs” to artificially bolster their SIPP sales figures. “Deferred SIPPs” are personal pensions which offer the option to become a SIPP at a future date.

However, many pensions providers are now listing “deferred SIPPs” in their SIPP sales figures, thereby creating an inaccurate picture of the scale of their SIPP operations. This has significant implications for advisers and the industry: -

Advisers may overestimate the resource and expertise offered by the SIPP provider.

Increased scrutiny of the seemingly exponential growth in the SIPP market, with associated fears that the wrong people may be taking out SIPPs.

Chris Smeaton, Propositions and E-Commerce Manager, James Hay, said, “The issue of deferred SIPPs is distorting the perception of the SIPP market. Exaggerating the size of the SIPP market has implications for advisers and for the regulation and management of the market.

“James Hay firmly believes that “deferred SIPPs” should not be reported as SIPP sales. This will ensure greater transparency which in turn enables advisers and the market to make better decisions.”

James Hay has over £11 billion assets under management with 38,000 investors.

James Hay SIPP is backed by Grupo Santander, the seventh largest bank in the world. James Hay has won over 22 awards for its SIPP product and service in the last six years.