SIPP confusion remains a year after regulation

Twelve months on from SIPP regulation new research carried out on behalf of innovative pensions and investments provider Merchant Investors shows that adviser confusion still remains one year on following the advent of SIPP regulation.

The research reveals only a third of advisers (31%) are aware you can self invest protected rights if you use the right kind of SIPP, and that clients can use protected rights monies to invest in commercial property. However, this awareness has grown slightly since Merchant Investors conducted a similar survey in April 2007, when just 22% of advisers understood the changes.

In addition, 24% of advisers still believe you cannot self-invest protected rights at all, though this, reassuringly, is down from 28% last year. Furthermore, the number of advisers who say they don't understand the current rules is down by over a half from 20% in 2007 to 8% in 2008.

Tim Fox, head of compliance at Merchant Investors said: "Regulation has brought with it many changes including greater levels of protection and disclosure for clients as well as a shift to activity-based charging, making it easier for clients to see where their money is going."

"However, the varying SIPP structures available can, even now, seem confusing, so it's no wonder some advisers feel in the dark. With the launch of our new OneSIPP, which combines the ability to self-invest Protected Rights of an insured SIPP with the flexibility of a trustee-based structure, we have developed a simple product which should meet most clients' needs."