4/2/2010
By Sophie Baker
If HMRC allows an asset class to be invested in self-invested personal pensions (SIPPs), providers should also, say advisers in a survey conducted by Suffolk Life.
The SIPP provider has found that just over a third (35 per cent) of IFAs would like to see unquoted shares as a widespread investment capability within a SIPP. Thirteen per cent would like overseas commercial property purchase included, ten per cent third party loans, and eight per cent said derivatives should be allowed. A further 23 per cent would like to see borrowing granted permission for investment within a SIPP.
Sales and marketing director at Suffolk Life, John Moret, told Pensions Age that the research, which questioned advisers on where they felt there was unfulfilled demand when it comes to investment capability, showed “quite a demand for unquoted private company shares. I find that quite surprising.”
He said providers need to consider whether it is worth the risk, hassle and operational costs of allowing these additional investment capabilities within a SIPP, and whether these issues will be merited “given the likely volumes”.
Moret said private company shares are not something Suffolk Life allows. However, “our aim having done the research and seeing a strong response in that area, there would have to be strong reasons for ignoring it. But we haven’t looked at it yet.”
Other stories you may find of interest:
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The pace at which the group self-invested personal pension (G-SIPP) market is growing could cause problems for the Financial Services Authority (FSA), according to Suffolk Life’s director of sales and marketing, John Moret
IFAs must review transfers to avoid hefty fines
Pension transfer cases must be reviewed by IFAs as a priority, particularly to ensure clear documentation of all advice, says MetLife
