Q: How can I compare Sipps?

These include stakeholder, traditional personal pension, external funds link pensions, platforms and Sipps.

Comparing Sipps requires getting down to the nitty gritty because both angel and devil are in the detail, according to Mary Stewart, director of Hornbuckle Mitchell.

Ms Stewart said there were some key questions for the provider.

1) What is their track record, size and financial strength?

2) Does it have the expert administration and technical knowledge required?

3) What systems and controls do they have in place to ensure good service and TCF?

4) Is there any independent verification of the quality of the product, such as Defaqto ratings?

5) What is the legal structure of the Sipp and what consumer protection does it have?

6) How does the provider support the adviser in their day to day role, for example, are they providing support in the transition to RDR.

Ms Stewart said the answers to these questions give an important insight into what to expect.

The lines between many of these have become a little blurred, according to Billy Mackay, marketing director of AJ Bell, HM Revenue & Customs.

The different product shapes and the variety of approaches to providing product information and charges can make it difficult to weigh up the pros and cons of the increasing number of available products, according to Mr Mackay.

For many advisers and clients, Mr Mackay said Sipps were viewed as personal pensions with a wider investment choice. The market historically aligned itself around three distinct variants, he added.

1) The first could be described as the conventional or bespoke Sipp, dealing in all areas from share portfolios and collectives to commercial property.

2) The second is typically a lower cost option, which offers access to a wide range of investments but does not venture into the more labour intensive assets like commercial property.

This helps to keep the costs down, often below those on offer from insured personal pension products with external fund links.

3) The third variant is the low cost execution only model, which appeals to those who rarely take advice and want to adopt a DIY approach.

According to Mr Mackay clients using this model tend to be outside of the advice domain and tend to deal online, mainly in collectives, stocks and shares.

Mr Mackay said: “As you would expect, the Sipp market continues to evolve.

“Recent developments include Sipp structures that, in essence, operate on a factory gate priced model with the ability to increase cost as you increase the investment sophistication and also allow you to introduce RDR friendly adviser remuneration options.