Scottish Widows responds to Sipp rule changes
Scottish Widows has welcomed the planned changes announced by the government of the way "protected rights" are regulated by law in the UK.
According to the financial services firm, any measures that serve to enhance the flexibility of products designed to help people saving for retirement, including self-invested personal pensioners (Sipps), should be beneficial.
However, the company has also made clear that advisors and other relevant parties should fully explain the risks involved with transferring protected rights into a Sipp.
"We are concerned that many people could be advised to transfer their protected rights into a Sipp without realising the effect of charges under their new arrangement," a statement from Scottish Widows explained.
"We believe strongly that all transfers into Sipps should be accompanied by full disclosure showing the possible pension at retirement and the effect of charges."
The government announced earlier this week that it now deems the restrictions on transferring protected rights into Sipps as unnecessary and plans to have them scrapped from October of this year.
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