James Hay closes Family Sipp to new business

James Hay has closed its Family Sipp to new business.

The Sipp and SSAS provider insists the decision is not linked to the Government’s reclassification of scheme pension as a defined-benefit.

A James Hay spokesman says: “I can confirm we have closed the James Hay Family Sipp to new business.

“The decision has nothing to do with the scheme pension issue, which I think presents a bigger problem for SSASs than Sipps.

“James Hay spoke to a lot of IFAs and there simply is not demand for the product.”

James Hay has 150 Family Sipp customers altogether. However, the provider says it has only sold 30 Family Sipps this year.

The spokesman says all existing contracts will be honoured.

Axa and Rowanmoor Pensions also currently offer Family Sipp products.

Rowanmoor says it has no plans to close its Family Sipp to new business.

Head of pensions technical services Robert Graves says: “The Family Sipp is never going to be a high volume product but in the right circumstances we think it is a good proposition. We sell on average 120 a year and that has been pretty consistent.”

Axa could not be reached for comment.