Can a SIPP have investments other than with the "provider's" Funds?

petemcdermott

I am thinking about transferring my money from a SSAS (small self administered scheme) to a SIPP to reduce charges.

One of the existing investments is in the form of a loan for 5 years and would I need to transfer this to a new SIPP. The SIPP "provider" wouldn't get any commission on this.

It is hard to get advice from IFA's without being offered something you don't really want!

bigadaj

I think the answer is that the sipp provider determines what may be held within the sipp. So it's likely that some providers will allow you to hold the loan, however such providers aren't probably going to fall into the cheap end of the spectrum. So it could be the case that you could transfer to a sipp but it may not be cheaper than your current ssas arrangements.

AnotherJoe

Is this a loan you've lent out (eg someone borrowed £X from you and is paying it back) out or a loan that you owe?
I dont think that sounds like something that can be in a SIPP anyway but as said it depends on the SIPP. can you give more details on the loan? Is it a P2P type thing? Not many SIPPs allow those yet.
Most likely is you can xfer everything else and keep the loan until its time is up.

dunstonh

Can a SIPP have investments other than with the "provider's" Funds?

A SIPP is a whole of market investment wrapper. It doesn't have provider's own funds (caveat is that if it an insurance company version which offers the own funds in addition to the normal whole of market options).

Are you sure its a SIPP that you are looking at and not a personal pension?

It is hard to get advice from IFA's without being offered something you don't really want!

Why, what has the IFA offered you?

Malthusian

If it's a loan to the sponsoring employer it can't be held within a SIPP. More info on exactly what the investments are would be helpful, but as a general rule, if they're esoteric in nature then you would need a SIPP provider at the specialist end of the market and their charges probably wouldn't be that much lower from what you are paying for the SSAS. Especially as you want an in-specie transfer - even if this is possible the new provider would likely apply a charge for this on top of its usual setup charges.