Skandia: Platforms could spell end for Sipps
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Skandia says the need for Sipps will fall when advisers are able to manage a client’s pension via a platform.
Speaking at The Platforum V Conference, Skandia UK marketing director Nick Dixon said as the number of products available on platforms grew, they would increasingly be able to accommodate pension schemes.
Dixon said: “If you can manage and advise on pensions on platforms across a wider range of assets they would increasingly replace the need for Sipps because the money can be managed in other product areas and the simplicity of using a platform would displace Sipps or at least force some kind of convergence.”
Although currently annuities are not available via platforms, Dixon said that they should be connected to a platform in the near future through third party relationships, which would give advisers the entire view of a client’s investment and income.
He said: “Annuities should be connected to the platform and if they were, via a third party relationship, then you would have the entire income plan of that client.”
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Readers' comments (13)
impertub | 13 Oct 2011 3:50 pm
Doghhhhh
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David Cowell, Myddleton Croft | 13 Oct 2011 3:56 pm
Does this mean that Skandia and all the other insurance companies are going to drastically reduce their charges and drastically improve their admin?
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Anonymous | 13 Oct 2011 3:57 pm
If it means the demise of James Hay then I for one would be for that. Absolute disgrace of a company that take 4 working days to forward a switch request as standard practise if you don't use the funds they offer.
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Gavin Ayling | 13 Oct 2011 4:08 pm
SIPPs as a pension type will remain a requirement while assets are held on platforms as the alternative is a pension design that is a non-SIPP and non-stakeholder proposition which will be difficult to position and provide no benefits over a platform-based SIPP (or deferred SIPP).
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Bill Wells | 13 Oct 2011 5:53 pm
Gavin - I'm sure you have a point to make, but what is it ?
Your entry is unintelligible !
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tim sargisson | 13 Oct 2011 8:45 pm
Dear anonymous
It seems a tad excessive that a switch form taking four days should lead to the end of a whole company which currently manages SIPPs for around 40,000 investors.
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Sophie Holland | 13 Oct 2011 9:33 pm
Surely Skandia have been offering this platform ever since they merged with Selestia? SIPPs are still here ... and growing in popularity.
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Anonymous | 14 Oct 2011 6:18 am
Isn't this the chap that thought that 8 track tapes and betamax video was the technology of the future?
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Peter Jones | 14 Oct 2011 7:13 am
Mr anonymous, what an extreme view you take on James Hay or are you from a competitor with sour grapes?. IFG have totally transformed this company from a dinosaur to a company that now has a SIPP that is fully on-line and if you choose the new 7IM option then the product is fee free to the client, WOW. This is where my business will be going.
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Sean | 14 Oct 2011 8:41 am
I fail to see how a SIPP can be on a platform. Will a platform SIPP be able to monitor commercial property etc?
The problem is that people use the term SIPP when they are referring to a personal pension that has access to large number financial instruments (equities, ETF's etc).
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