But the FSA is now looking to clamp down on the market, examining advisory firms who are investing clients’ funds inappropriately through Sipps into alternative assets and proposing minimum capital levels for providers.
The regulator has intimated that the vast range of investment options available can be unsuitable for many clients as the unfettered choices creates risk as well as opportunity.
This guide examines which clients are suitable for which variety of Sipp, the adviser’s role in choosing and managing Sipps, the pros and cons of these products for both clients and advisers, some Sipps situations to beware and how to find the right Sipp for your client.
Answers provided by Hyman Wolanski, managing director of Sippchoice; James Sumpter, wealth management director at Bestinvest; and Robert Graves, head of pensions technical services at Rowanmoor Group.