Xafinity has updated its SimplySipp with two investment accounts to support both accumulation and decumulation investment strategies.
The increased flexibility comes as a response to feedback from advisers looking for a product suitable for clients taking advantage of the new drawdown pension regime, but at low cost.
With two investment accounts can hold discretionary fund manager accounts, stockbroker accounts, wraps, unit trusts, Oeics, bank deposit accounts and most structured products.
All Xafinity’s self-invested personal pensions are ‘whole of market’ and the annual fee for holding one investment account remains at £250 per annum plus VAT, increasing to £299 per year plus VAT for two investment accounts. Fees are collected monthly in arrears and additional fees may apply.
Jeff Steedman, head of Sipp and Ssas business development, explained that in order to facilitate the new drawdown rules, many advisers were asking for two investment accounts to accommodate a strategy for both longer term growth, in the likes of a discretionary fund manager/stockbroker account, with a separate investment strategy for the shorter term.
“The second account can be more liquid to facilitate all drawdown payments, via the Sipp current account,” he added.
At the end of last month Parmenion confirmed it would add features on its Sipp on 7 April, the day after new at-retirement reforms come into force, including a flexi-access drawdown facility.
Earlier this month, Suffolk Life also announced that it would offer the option of uncrystallised fund pension lump sums in time for pension freedom day.
peter.walker@ft.com
