Seven Investment Management (7IM) has entered the pension space by launching its own self-invested personal pension (Sipp).
The 7IM Sipp will offer a range of standard investments, including bonds, cash, exchange traded products, structured products, equities, managed pension funds and real estate investment trusts.
But it will not allow non-standard investments.
The Sipp will pre-fund tax relief on pension contributions, meaning more money is put to work earlier.
Meanwhile, the 7IM platform will continue to allow other Sipps to be held on it.
The firm said it had put a lot of resource, technology and investment into the product, aiming to make it as competitive as possible.
Verona Smith, head of platform at 7IM, said: "We are really excited about our Sipp launch.
"Becoming a pension provider in our own right underscores our commitment to offering a joined up retirement planning proposition.
"The launch of our Sipp is a natural part of our evolution. The 7IM platform has the technology and flexibility to help us deliver a retirement planning service that we are really proud of, and the introduction of our own Sipp enhances this further."
The Sipp will be free to establish and will not incur an annual fee on accounts of more than £75,000. For accounts below that a fee of £100 a year will be charged.
Transfers in of uncrystallised funds from defined contribution schemes will also be allowed free of charge for accounts of more than £75,000, while those below will be charged £50 per transfer.
Drawdown funds will be charged £50 per transfer for all sizes.
Transfers out meanwhile, will incur a fee of £75 per transfer, while in-specie transfers out will cost £200.
Platform fees, fund management charges and discretionary service fees will be levied on top of other fees.
The Sipp will collect annual fees in advance, and charge all other fees at the time of the transaction.
7IM Sipp fees
Fees (charge + VAT) | |
Establishment of SIPP | £0 |
Annual Fee | £0 on SIPP accounts above £75,000. A fee of £100 per annum will be applied for SIPP accounts below £75,000. |
Additional fees | |
Transfers in (from Defined Contribution schemes only) | |
Uncrystallised funds (per transfer) | £0 on SIPP accounts above £75,000. A fee of £50 will be applied for SIPP accounts below £75,000. |
Drawdown funds (per transfer) | £50 |
Benefit payments | |
Purchase of an Annuity | £100 |
Benefit Crystallisation | £75 |
Payment of Income | £135 p.a. |
Switch from Capped to Flexi-Access Drawdown | £75 |
Review of Capped Drawdown limits | £75 |
Closure of SIPP | £75 |
Transfers out | |
Cash Transfer Out – per transfer (full or partial) | £75 |
In Specie Transfer Out – per transfer (full or partial) | £200 |
Other |
|
Splitting / sharing of assets on divorce | £300 |
Distribution of Death Benefits | £300 |
Ms Smith said: "Many advisers have told us that it was important for their client experience to have a cost effective and easy to access Sipp which is fully integrated with the 7IM Platform.
"We also understand that from a suitability point of view it is important that we keep our open architecture approach and continue to make available other Sipps via the 7IM platform."
Alan Chan, director at IFS Wealth & Pensions, agreed with 7IM's approach.
He said: "It is great for clients and advisers who use the 7IM platform as it will be all done under one roof going forward to create a more seamless experience.
"Some platforms use Sipps from other providers and there is nothing wrong with this but sometimes it can feel a bit disjointed."
He said the fees seemed reasonable and "in the right ballpark".
Mr Chan said: "The fact that they are able to offer pre-funding on pension tax-relief is the icing on the cake."
carmen.reichman@ft.com
