Expert issue warning over UK Sipp market
The scale of the UK's self-invested personal pension (Sipp) sector is being overestimated by consumers and by industry analysts, experts at the James Hay company have claimed.
Analysts at the financial services firm are convinced that the prevalence of what are termed "deferred Sipps" is leading to inaccurate perceptions of the sector, which could have a negative impact on how potential Sipp investors are advised.
Deferred Sipps are those that providers count in their tally of opened Sipps policies, but which in fact only give customers the option to transfer their savings into a Sipp scheme, James Hay explains.
"Exaggerating the size of the Sipp market has implications for advisers and for the regulation and management of the market," said Chris Smeaton, propositions and e-commerce manager for James Hay.
"James Hay firmly believes that 'deferred Sipps' should not be reported as Sipp sales. This will ensure greater transparency which in turn enables advisers and the market to make better decisions," he added.
Wholly owned by Abbey, James Hay describes Sipps as being an easy-to-manage and tax efficient way for consumers to save for retirement.
Related Stories
This news is available in 