Vanguard SIPP - Now open!!!

ffacoffipawb

Now available if anyone is interested ... 

https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account

Dazed_and_C0nfused

Looks like they accept DB transfers but only with a positive recommendation.

For DC schemes it is cash transfer only and they don't offer drawdown for the moment.

lulabelle1

Fab, transfer completed!

nick1234

DONE!! Transferred from HL quick and easy, those rip off merchants will no longer get my business!!

i wonder what impact this will have on HL, have been waiting for them to open the sipp for so long

Prism

As expected, very limited choice and more expensive than HL and Youinvest for ETFs. Not for me

Alistair31

This will seriously hurt HL I expect.
 Although, personally I’m all ETF in my SIPP so won’t be switching.

[Deleted User]

I would do - in fact I would have a ISA, GIA and SIPP. But I am retiring abroad in the next few years and Vanguard will close all of your accounts (ISA, GIA and SIPP if in drawdown mode) if you are not UK Resident. (unlike most other providers)

Loan_soldier

If I transfer my SIPP what happens to my pending tax relief payments in my existing SIPP?

Presumably this would be transferred over?

bowlhead99

Alistair31 said:

This will seriously hurt HL I expect.
 Although, personally I’m all ETF in my SIPP so won’t be switching.

Not convinced it will massively hurt them though any competition is unwelcome of course.

Someone with £150k of ETFs would find it cheaper to stay at HL like you are doing. 

Someone with £50-100k of Vanguard funds at HL could now save £150-300 a year by moving to Vanguard's own platform, but they could have already saved £100-250 a year by moving to AJ Bell Youinvest (0.25% instead of 0.45%) or IWeb (£180 flat fee) and have not chosen to do that, and a move to vanguard restricts them in fund choice.

Really the part of the market where vanguard is going to be most attractive is for people with relatively small pots who can easily see that if they are happy to exclusively use vanguard funds for their pension they could go direct for 0.15% with no transaction fees instead of to HL for 0.45% with no transaction fees.  The latter now looks like an insane move, whereas before HL could have been an ok move because most of the platforms with no (or significantly lower) percentage based fees also had transaction fees which can add up on small pots.

So vanguard is attractive for those people using trackers with small pots, such as people just starting out who come here for guidance; but for those with large fund pots at HL (where HL make a LOT of money), they have already shown that they are not fee sensitive - otherwise they wouldn't hold large fund pots at HL!

SnowMan

Dazed_and_C0nfused said:

Looks like they accept DB transfers but only with a positive recommendation.

For DC schemes it is cash transfer only and they don't offer drawdown for the moment.

Quite surprising and a bit disappointing that they don't allow re-registration of Vanguard funds held on other platforms to Vanguard on transfer.

Seems to be a bit against the spirit of the regulations, which while they require providers to offer re-registration as an option when transferring away from a provider they don't require it on transfer to that provider. The FCA rule is here I think, and seems to apply to SIPPs  

https://www.handbook.fca.org.uk/handbook/COBS/6/1G.html?date=2018-01-13&timeline=True

If a client requests a firm (F) to transfer the title to a retail investment product which is held by F directly, or indirectly through a third party, on that client's behalf to another person (P), and F may lawfully transfer the title to that retail investment product to P, F must execute the client's request within a reasonable time and in an efficient manner.

A firm acting as a registrar should carry out a request by F for the re-registration of ownership of a retail investment product to P within a reasonable time.

k6chris

So, all anyone needs to do to meet all their retirement needs is open up an account, put everything in the LS80 fund and then drawdown 4% (SWR) each year.  Job done.   Serious question, on a scale from 1 (utterly reckless) to 10 (best or the best), where would that strategy rank??