SIPP payment

lesfish_2

my son who is 25 has mistakenly put his money into a SIPP instead of an ISA online .can he transfer it to an ISA ?

Vortigern

Is this a newly opened SIPP? If so there may be a right to cancel?

Which SIPP provider?

bowlhead99

Generally if you have contributed money into a SIPP (or transferred a pension in from another pension provider, although that won't be relevant here) you get a 30-day cooling off period during which you can cancel.

However, if you actually start to use the SIPP, e.g. buy investments with the money you contributed, you're basically saying you're going to waive the cancellation period and definitely want to go ahead and invest.

Here's an extract from AJBell's terms, as an example of popular DIY provider who also do the pensions admin for some other investment groups.

What if I change my mind?
You have a legal right to cancel your SIPP, if you change
your mind. If you wish to cancel you must do so within
30 days of the date you receive our letter confirming the
establishment of your SIPP.
Cancellation rights will also apply to the receipt of
transfer payments and on the first occasion that you
choose to take benefi ts. You will have 30 days from
the date that you receive our letter acknowledging the
transfer or establishing the benefi ts to exercise your right
to cancel.
You may exercise your right to cancel by writing to us at
AJ Bell Youinvest
4 Exchange Quay
Salford Quays
Manchester
M5 3EE
Email: enquiry@youinvest.co.uk
quoting your name and SIPP reference number.
You must state whether you wish to cancel your SIPP, a
specific transfer, or benefi ts.
If you wish to make an investment during the 30 day
cancellation period you can do so, but this will lapse your
cancellation rights. Lapsing your rights will mean that
you cannot cancel your SIPP, contributions or transfers.
Further information about your cancellation rights is
included in our SIPP Terms and Conditions which are
available at https://www.youinvest.co.uk.

So, while this is just an example, he might find that if he's spent his contributions on buying some investments already it's going to be too late to unwind it and he will have to keep it for 30 years or more before he can access it. (He could of course transfer to a different provider if the fee structure isn't suitable for holding small amounts).

dunstonh

If he is within the cancellation rights period, he can.

Noting what Bowlhead has said above, most providers will still cancel the pension within the cancellation rights period if you have bought the investments. However, if the investment has fallen in value, he will receive the lower value and not the original investment amount.

His provider will have their rights to cancel on their webpage.

Alexland

Thats quite a mistake suggest your son calls the provider pronto. If it is locked in then I hope it wasn't significant enough to affect his life events or over his relevant earnings for the year?