Sipp providers reassure advisers and consumers no Icelandic big freeze

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.