SippCentre welcomes 'level playing field'

SippCentre has confirmed it will be accepting protected rights transfers from early May in anticipation of government changes effective from 1 October.

Fergus Lyons, commercial manager for SippCentre, said the new facility would allow advisers to take full and immediate advantage of the self-investment facility coming into force in October.

He said: "The removal of the unnecessary restriction on trust-based Sipps accepting protected rights is very welcome and will help level off the playing field. The cash facility, which is available through Sippcentre from May, is a step on the way to fully flexible investment of protected rights in Sipps from October, and this opens up a massive new market worth upwards of £100bn "

Mr Lyons said clients would pay the standard transfer fee of £60 with no additional establishment or administration charges if protected rights are transferred into a SippCentre Sipp.

In the event of a government u-turn, Sipp Centre will offer a free transfer-out of these protected rights funds to any other UK pension arrangment within six months of the announcement. The Sipp provider will only accept transfers from other UK-registered pension schemes.

The SippCentre will be sending out relevant information to IFAs later this week. Further details can be found at www.sippcentre.co.uk

Following provisions laid out in the 2007 Pensions Act, Sipp investors will be able to invest their protected rights money in direct shares, bonds and commercial property from October 2008.