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.
“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.”
