Pensions  

Investec launches Sipp account

Investec launches Sipp account

Investec Private Banking has launched a 30-day notice account specifically designed to address issues raised by impending changes to Sipp capital adequacy rules.

The new Sipp & Ssas Saver Account has a rate of 1.20 per cent AER and a minimum balance of £25,000.

Linda Brown, head of savings at Investec Private Banking, said: “With uncertainty around increases in the Bank of England base rate as well as turbulent financial markets, Investec aims to provide clients with a welcome respite to this with the launch of the Sipp & Ssas Saver.

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“Furthermore, in line with regulatory changes to capital adequacy requirements, the notice period allows Sipp providers to classify this account as a standard asset.”

The new capital adequacy requirements come into effect on 1 September and categorise assets with terms longer than 30 days as non-standard.

Pension trustees will be required to hold additional capital for any non-standard asset held within a Sipp under their administration.

Adviser View

Dennis Hall, chief executive of London-based Yellowtail Financial Planning, said: “We tend to be broadly plain vanilla in terms of what we have in Sipps.

“We tend not to get into things like private equity or long-term cash holdings. We don’t see the benefit with interest rates as they are.

“I can see why they are doing it but I am not sure it will capture much market share.”