Industry interest in suitable investments list for Sipps

Providers and research organisations have spoken of their support for a ‘suitable investments’ list for Sipps.

Speaking at a panel session at the FT Intermediary Forum on pensions today, panellists argued that a defined list of allowable investments would help limit unsuitable investments, such as some Ucis, from being included.

“Personally I am in favour if a list of investments,” said Andrew Roberts, chairman at Barnett Waddingham. “I think it might be hard to implement it. I suspect it isn’t as easy as just publishing it. Some commentators will say there might be question marks about whether a particular investment should be on that list or not.”

The Isa industry has managed well with a proscribed list of investments, he added, so Sipps should be able to do the same.

Roberts said it is hard for a consumer to decide, without advice, what type of Sipp and investments is right for them.

Matthew Ward, wealth management consultant at Defaqto, said there would be debate on what investments should be included but the industry would agree on 85-90 per cent of what the list should comprise.

Sipps have been very successful so far, he added, but now needs to move on to ensure it stands up under the closer scrutiny it us now attracting. “The industry needs to use its experience to move on to the next stage,” he said.

The Money Management Sipp Special Report is available online and in the October issue.