SIPP - Question re protected rights

mystic_trev

I moved my from my ex company scheme into a SIPP several years ago. However, at that time I couldn't move the Protected rights, amount as SIPP providers wouldn't allow it. Does anyone know if this has changed? I will ask the Provider in the New Year, but am interested if anyone has additional information?

How sad am I posting this on Christmas day!

jamesd

Yes, you can hold protected rights funds in a SIPP.

EdInvestor

Err not yet you can't.

You might be able to after April.

Stay tuned

jamesd

You're right. Thanks for the correction!

dunstonh

hybrid SIPPs and fund supermarket personal pensions can hold protected rights but full SIPPs cannot.

EdInvestor

dunstonh wrote:

hybrid SIPPs and fund supermarket personal pensions can hold protected rights

This is because they are not Sipps, regradless of what they may like to call themselves for marketing purposes. :rolleyes:

dunstonh

This is because they are not Sipps, regradless of what they may like to call themselves for marketing purposes. :rolleyes:

And most people who buy SIPPs do not use the features that make SIPPS unique but stick with the investment options that are used on fund supermarket and hybrid SIPPs.

The name isnt important. Its what people do with it that is.

wotsthat

And most people who buy SIPPs do not use the features that make SIPPS unique but stick with the investment options that are used on fund supermarket and hybrid SIPPs.

The name isnt important. Its what people do with it that is.

I think this might be the second time I remember agreeing with Ed! Hybrid SIPPs aren't real sipps as you can't invest directly in equities. They have been designed by the life companies to try and stem some of the anticipated outflows when protected rights may be allowed to be transferred out.

People may be using real sipps for fund purchases but I see this as simply moving from the frying pan to the fire - a fund manager still has to be paid and they fail to grab the major advantage of sipps i.e. lower costs.

The government have made a few u turns on pensions recently and I wouldn't be surprised if they caved in to industry pressure and change their plans to allow protected rights in sipps.

dunstonh

I think this might be the second time I remember agreeing with Ed! Hybrid SIPPs aren't real sipps as you can't invest directly in equities.

No-one is saying a hybrid SIPP is a full SIPP. If it was a full SIPP it wouldnt be called a hybrid SIPP.

They have been designed by the life companies to try and stem some of the anticipated outflows when protected rights may be allowed to be transferred out.

No they havent. The hybrid SIPPs are offered by the fund supermarkets and they have no legacy pension business.

People may be using real sipps for fund purchases but I see this as simply moving from the frying pan to the fire - a fund manager still has to be paid and they fail to grab the major advantage of sipps i.e. lower costs.

That comes down to investment choice. Some people like shares. Some like unit trusts. Some like ITs. Some like a combination. Most SIPPs end up investing in unit trusts.

The government have made a few u turns on pensions recently and I wouldn't be surprised if they caved in to industry pressure and change their plans to allow protected rights in sipps.

The logic why it wasnt included was sound and the increased solvency and regulatory requirements SIPPs will be working under means that they should be suitable for protected rights. Therefore removing one of the reasons why protected rights were not allowed before. It's a sensible move and not one that has required any "politcal" or agenda driven pressure.