Wow orgasmic - the draft SIPP Protected Rights proposals are really here !!!!!!!

wombat42_2

http://www.dwp.gov.uk/consultations/2007/

http://www.dwp.gov.uk/publications/dwp/2007/occ-pen-consult/pen-cosipocc.pdf

I havent bothered to read it all yet but I notice that intended implementation date is October 2008.


:T :beer: :j

Milarky

Wombat, you obviously know a bit about the background of this. Any chance of coming back and adding a summary of where we are? I assume that this was originally intended to be part of the government's big a (or 'A') day reforms but was delayed from April 2006?

wombat42_2

I think it was a delayed decision that was to be part of A- day. The PDF does say that a decision was to originally have been made on 2005 but was deferred.

Anyway it looks like Protected Rights as of Oct 2008 will be able to be invested in a SIPP on the same basis as a Non-protected rights. There dont seem to be any complicating controversial factors for discussion in the draft proposals.

dunstonh

read the basics and it is still under consultation and proposed for next Oct unless the consultation brings in changes.

Basically, the fact SIPPs were not regulated was the main issue and that has now passed and the current restriction is seen as unnecessary. Investment risk was also mentioned with SIPPs allowing much higher risk investments and that was highlighted as a concern. (Although you can go 100% china or tech funds in a personal pension and suffer a 70% correction so the potential for massive losses is almost as high on PPs if you are foolish enough. So I dont see why SIPPs should be excluded on that front).

I think the only thing that could stop it happening now is if a scandal occurs with SIPPs in the next 6 months. That is possible with their overuse but these things tend to show up many many years later and usually after a stockmarket crash when complaints generally rise.

I wouldnt call this orgasmic. Removing annuity compulsion reserves that level of response. Its positive news for those that wish to self invest.

wombat42_2

I think this thread should be made a sticky until Protected Rights SIPPs are implemented (most likely October 2008).

dunstonh

We cant get the excellent ISA vs pension thread stickied so I wouldnt hold your breathe.

The way this particular forum is moderated, it will probably be made a sticky in November 08.

wombat42_2

I have made a PM request to isasmurf and Browntoa.

purch

Wow orgasmic - the draft SIPP Protected Rights proposals are really here !!!!!!!

You get this excited about SIPPS...what would happen if a fully clothed woman walked into the room :eek:

wombat42_2

purch wrote: »

You get this excited about SIPPS...what would happen if a fully clothed woman walked into the room :eek:

SIPPS are better than sex.;)

EdInvestor

At first glance this looks good with a clear date and no apparent effort to micromanage investment arrangments, though the spouse anuity requirement is still there.

Some reaction:

http://www.ifaonline.co.uk/public/showPage.html?page=ifa2006_articleimport&tempPageName=662284

wombat42_2

Related links:
http://informedchoice.blogspot.com/2007/12/protected-rights-in-sipps.html
http://www.moneymarketing.co.uk/cgi-bin/item.cgi?id=155589&d=340&h=341&f=342
http://www.myfinances.co.uk/news/pensions/self-invested-personal-pensions-sipps-/-more-choice-for-sipp-sters-$482925.htm
http://ftadviser.com/?m=11173&amid=123915
http://www.citywire.co.uk/News/NewsArticle.aspx?VersionID=99424&MenuKey=News.Home