HSBC signs up Standard Life to provide Group SIPP

HSBC, one of the largest banking and financial services organisations in the world, has signed up Standard Life to provide a Group SIPP arrangement for employees who are looking to invest maturing HSBC Share Reward Plans into a pension.

The Group SIPP, available to all participants in UK HSBC share plans, provides employees with an easy way to transfer shares held in the plan to the Group SIPP with the additional bonus of income tax relief. The Group SIPP will sit alongside the existing HSBC defined benefit and defined contribution pension arrangements.

Andy Dickson, senior business development manager, Standard Life said: "Group SIPP arrangements have gone from being a niche to a mainstream pension arrangement in a very short space of time. One in four of our company pension plans currently sold is a Group SIPP.

"The deal with HSBC is unusual in that we have developed a bespoke unitised single company share tracker fund which is invested solely in HSBC stock. This will allow all employees to buy or sell units in this fund, rather than incur individual dealing costs and stamp duty while continuing to fully participate in the growth and success of their company. Moving shares into the Group SIPP allows the employee to obtain further tax relief as well as supplementing their retirement funds.

"We will continue to develop innovative solutions for clients who are looking to maximise the employee benefit packages they offer."

John Beadle, head of group performance & reward at HSBC said: "Our Sharesave Scheme is popular with employees as it provides an opportunity to save up to £250 per month to buy shares in HSBC at 20% below market value. The Group SIPP with Standard Life provides additional advantages for employees through UK tax relief and so helps retain our people and allows them to invest in the Company."

The Group SIPP was implemented by HSBC Actuaries and Consultants Limited (HACL), the employee benefits arm of HSBC.

Paul Armitage, head of DC pensions at HACL said: "We are seeing increased interest and demand in the market for Group SIPP arrangements as employers realise the advantages they bring in a variety of key areas. This has led to us being actively involved in establishing a number of similar arrangements utilising the expertise gleaned from the HSBC exercise."