The Simple Retirement Account is reported to significantly reduce the number of complicated forms and abstract charging models that have been associated with the Sipp marketplace.
The Nottingham-based Sipp and Sass provider unveiled the innovative product as part of its 20-year anniversary celebrations and has since announced that it has partnered with four discretionary fund managers to launch the Simple Retirement Account.
According to Talbot & Muir, the Simple Retirement Account offers one application form and one single investment, consisting of one bank account and one direct fund management portfolio.
There is an annual administration cost for using the products, £250 excluding VAT, but no set-up fee charges are payable.
To date, Brooks Asset Management, Brewin Dolphin, Canaccord Genuity Wealth Management and Close Brothers have all supported the launch.
This release followed news that the FCA will investigate the Sipp industry in its third thematic review of the market, with a specific focus on the control of client money, due diligence and risk controls.
The regulator said it would take enforcement action against providers that do not have the interests of consumers at heart and has ordered Sipp providers to demonstrate that they are meeting requirements.
In response to this, Talbot & Muir’s director of sales and marketing, Nathan Bridgeman, said the Simple Retirement Account will offer advisers a fresh approach to a market that is “facing challenges and continuing to contract”.
REACTIONS
PROVIDER VIEW
Nathan Bridgeman, director of sales and marketing for Talbot & Muir, said: “Our 20 years in business has shown us that advisers are increasingly looking for products that ease workload and cut down the time and resource spent on things like administration, while not compromising potential returns for the end client. The Simple Retirement Account does just that. Sipps remain a flexible and effective part of the pension market and we are delighted to be able to bring a new product to market to meet the needs of our adviser community and their clients.”
ADVISER VIEW
Claire Walsh, IFA for East Sussex-based Pavilion Financial Planning, said: “I would be asking how it differs from the normal offerings. It appears the firm is marketing it as low-cost, but not necessarily as very flexible. At first glance, I would compare it to a pension platform that charges an assets-under-management fee. It is not bad for someone with over £85,000, but anything less would be cheaper with Nucleus. Access to a range of fund managers is good and I see this as a product suited for someone who just has a pension and is approaching retirement. In cases such as this it could prove useful, provided there are not any extra hidden costs.”
CHARGES
There is an annual administration charge of £250, which does not include VAT, but there is no set-up fee.
VERDICT
Any product aiming to ease a financial planner’s workload is a plus, particularly if it also helps to promote transparency.
The endorsement of this ‘simple’ Sipp from a number of networks is also a positive sign, as is the presence of four different DFMs, but with a number of similarly competitive products on the market advisers should diligently compare costs and check suitability according to each client’s needs.
