Online share trading site IG Group has teamed up with pensions administrator James Hay to offer a new self-invested personal pension.
The Sipp will give investors access to IG’s full range of shares and exchange traded funds (ETFs), provided they are Sipp-eligible, while James Hay will provide the trustee service.
IG said Sipp investors would pay a £8 transaction fee, falling to £5 when the investor makes 10 or more trades a month. James Hay charges an annual fee of £195.
Ian Peacock, head of UK and Ireland at IG Group, said the addition of Sipps is an important step in the development of the firm’s offerings for the longer term investor.
“As the government moves further from pension provision, placing the responsibility to prepare for retirement firmly on the end investor, it is important that clients have access to the full range of account types to efficiently manage their long term investments.”
He said the IG platform gives investors 24-hour access to more than 8,000 shares and ETFs globally.
Dominic Basilea, director of Aqua Wealth Management, said he was concerned that giving private, non-professional investors access to direct share investing within a pension wrapper could be risky.
“It is fine if it is just for professional investors, but if it is open to everyone it could be a problem.”
He said the complex tax and contribution rules governing pensions meant most people need advice.
He added “playing around with your pension” by making uninformed bets on stocks would put investors’ retirement income at risk.”
A spokesperson for IG confirmed its Sipp is open to all investors, but rejected Mr Basilea’s criticism, saying its product gave informed investors more control over their investments.
The spokesman for IG also said the Sipp’s charging structure was more transparent than that of many Sipp providers.
james.fernyhough@ft.com
