Selftrade helps Britons understand the SIPPs maze

October 2008 signals the launch of new government regulations which allow Protected Rights to be held within Self Invested Personal Pensions (SIPPs). Selftrade, an independent, execution-only online broker, believes that these rule changes will trigger a major outflow of funds from insurance company schemes into SIPPs. Recent research also suggests that billions of pounds in pensions savings can now potentially be invested in these flexible schemes.

Protected Rights are the contributions made to pensions (personal and stakeholder) by individuals who contracted out of the State Second Pension. Previously these could not be held in SIPPs which meant that millions of pounds were locked in to underperforming funds.

People can be confused by new regulations which is why Selftrade, a leading investment services provider, has designed a detailed guide in association with Investors Chronicle to help those still unsure about the new rules. The information pack explains the key facts about SIPPs and highlights the benefits of the award winning Selftrade SIPP dealing account.

The guide can be downloaded for free online (selftrade.co.uk/you) or sent to a home address. Full details can be found on the website but some of the key points that it covers are below:

Is a SIPP suitable for me?
What sort of things can go into a SIPP?
What sort of tax breaks are on offer?
What costs are involved?
When can I start drawing my SIPP?
How to hedge a SIPP


Stephen Barber, Head of Research commented: “Self Invested Personal Pensions allow Britons to take total control of their future. By giving them the freedom to build investment portfolios to fit their circumstances, SIPP holders know exactly where their money is at all times, which is appealing in the current economic climate.

“These new regulations mean billions of pounds might now move into new and existing SIPPs. Managing a personal pension gives people the flexibility to maximise investment performance; they can decide what to invest in and when, switching their investments to react to changing markets and their own individual needs.

“The Selftrade SIPP offers a wide range of investments, including shares, funds, gilts and corporate bonds, covered warrants and structured products.

“We understand that when it comes to money, people want to deal with modern brands that are in tune with their fast paced lives. Anyone can have a Selftrade account and for a flat fee of £12.50 per trade, (which can be made either online, by phone or via your mobile), customers can stay in complete control of their investments wherever they are in the world.”