Self-directed investors can now use the Cofunds pension account, the platform’s head of product has revealed.
Martin Wigginton said: “One of our key focuses is helping financial professionals grow their businesses.
“Following the RDR, we are seeing the burgeoning self-directed market as a positive area of growth, and there is clear demand for more flexibility in products that fit with the changing nature of retirement.”
The Cofunds pension account, which was launched in 2010 and is administed by Suffolk Life, will give non-advised investors the same range of investments as advised clients.
The account is available through a limited selection of firms but is expected to have a wider rollout soon.
There are no charges to set up the product unless pension benefits are to be taken from the start.
Mr Wigginton added: “With a sharp increase in the use of drawdown expected after April 2015, the self-directed Cofunds pension account comes at a crucial time.
“George Obsorne’s pension reforms will open up significant new planning opportunities for advisers and their clients.”
The platform, the sale of which to Legal and General was completed in May 2013, has approximately £67.4bn in assets under administration, and provides administration and management services for advisers and their clients.
Background
Other platforms have announced changes in the wake of the chancellor’s pension changes announcement in March.
Old Mutual Wealth recently revealed that it would remove its yearly drawdown fee and minimum charge from 1 January 2015.
Its head of financial solutions, Tom Hawkins, said: “Following the Budget announcements, we believe drawdown charges should become obsolete.
“For providers, the new rules will remove much of the administration associated with income drawdown, making an extra charge unnecessary.”
He added that additional layers of charges would be “hazardous for customers” because “they can never fully predict future behaviour, and therefore how much they will pay in the longer term.”
Adviser view
Phillip Bray, marketing manager for Nottingham-based Investment Sense, said: “The more competitors you can have in the direct space, the better. Some new entrants might keep the big players on their toes.”
