Sippcentre to expand service proposition: AJ Bell
AJ Bell is planning to add Isa and dealing account options to its Sippcentre proposition, according to its marketing director Billy Mackay.
Speaking as the firm announced that it had grown its client base significantly, Mr Mackay said: "In recent years, self-invested personal pension products have developed that are typically online, low-cost and offer the vast majority of the investment flexibility available to full Sipps.
"Our Sippcentre proposition sits in this area and has been successful at attracting consolidation of existing pension assets. There has been a great deal of demand for us to expand the Sippcentre service to include other product wrappers.
"In the near future we will be adding Isa and dealing account options to it to enable advisers to consolidate their clients' pension and non-pension assets with us.
"In essence, we are enhancing the Sippcentre service to ensure that we retain the features, benefits and pricing philosophy that advisers value while expanding its scope to make it available for Sipp, Isa and personal dealing account assets.”
This came as AJ Bell revealed that its Sipp clients had grown to 55,000 as at the end of March this year.
Andy Bell, chief executive of AJ Bell, said: "Sipp numbers have been boosted by the growing understanding by advisers and clients that Sippss can be used as a mainstream financial planning solution.
"Despite some adverse external influences, the Sipp market remains buoyant and the shift from traditional pension structures to low-cost Sipps shows no signs of abating."
The company also revealed that AJ Bell's total assets under administration have increased by 20 per cent from £12.6bn to £15.1bn as at the end of March 2011.
Kevin Morgan, managing director of Hertfordshire-based IFA Consilium Financial Planning Limited, said: "Sipps continue to gain popularity among investors. This is because investors are keen to have more control of their pension arrangements.
"The costs associated with Sipps are also coming down, which makes the product very competitive compared with the more expensive personal pension schemes.
"We are positively encouraging Sipps because we believe these can add value to investors. Sipps will still be developing and growing in the market.
"AJ Bell is very experienced in operating Sipps and it has been doing very well in the market."