SIPP  

Guide to Sipps

  • Describe some of the advantages of Sipps
  • Identify who Sipps would be suited to
  • Describe some of the investments allowed in bespoke Sipps
CPD
Approx.60min
Guide to Sipps

Introduction

Sipps have been in the headlines for many months, as one of the unintended consequences of pension freedoms.

While many are able to access their pension pot, some have unwittingly been lured into investing their life's savings via a Sipp into a risky investment, something for which many are completely unsuited for.

As a result, the Sipp name has become tarnished, even if this is somewhat unfair. 

The product is after all simply a tax wrapper; it is the investments that unknowledgable clients are being led to that is causing all the problems, and forcing adviser levies to the Financial Services Compensation Scheme to increase.

There have been efforts to clamp down on this bad behaviour: the FCA forces Sipp companies to hold more cash for complex investments, and many will not take instruction from unregulated introducers, the individuals that have caused a lot of the problems.

There are also new companies coming into the market, with very simple low cost wrappers, that might give the sector a much needed boost.

This guide hopes to draw out some of these issues, and is worth an indicative 60 minutes' CPD.

In this guide

CPD
Approx.60min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. According to the first feature, investing in unusual assets is likely to continue as before, true or false?

  2. What is one of the more popular reasons for investing a Sipp, according to the first feature?

  3. Who is a Sipp most suited for?

  4. The Vanguard Sipp is the lowest cost Sipp for those with a pension pot that has not been drawn on, true or false?

  5. What is the name of the Sipp company that has brought Sipps the most adverse attention, according to the fourth feature?

  6. Hedge funds are allowable in some Sipps, according to the fourth feature, true or false?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Describe some of the advantages of Sipps
  • Identify who Sipps would be suited to
  • Describe some of the investments allowed in bespoke Sipps

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