This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X

Sipp providers reassure advisers and consumers no Icelandic big freeze

  • Print
  • Comment
Lucy Quinton
Sipp providers have reassured advisers and customers that they do not have any exposure to Icelandic banks after concern was raised with Money Marketing by some leading IFAs.

As all Sipps have to be set up with a bank account concern was raised as to whether some savers would have lost money following the high profile problems of Icelandic banks. Following the collapse of BCCI in 1991 many Ssas investors suffered losses.

Most Sipps are set up with a default bank but some providers allow investors to choose an alternative bank. Money Marketing spoke to the following providers that confirmed they did not have Icelandic bank exposure: Aegon, AJ Bell, Alliance Trust, Axa, Cofunds, DA Phillips, Fidelity, Hargreaves Lansdown, Hornbuckle Mitchell, IPS Pensions, Legal and General, Merchant Investors, Scottish Widows, Skandia, Standard Life, Suffolk Life, Wealthtime and Winterthur Life.

A spokeswoman at the FSCS says that should a Sipp provider have been exposed to Icelandic banks, customers would be protected. “We look at who the ultimate beneficiary of the bank account would be. If the account has been set up clearly for a beneficiary they would be covered. Rather than just looking at the account, we would look at who the ultimate beneficiaries of that account would be,” she says.

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick



Poll

Do you think other insurers will follow Legal & General and quit the ABI?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments