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‘A-Day opportunity for mass market’

Providers are calling for Sipps to be renamed as member-directed pension schemes after A-Day amid concerns that the name confuses investors.

The Sipp Provider Group is behind the move and is set to merge with the Association of Pensioneer Trustees and rebrand as the Association of Member-directed Pension Schemes. It believes some investors do not realise the product is a personal pension and think it is designed to invest in people’s own businesses.

Dissenting voices in the SPG, including Suffolk Life sales and marketing director John Moret, believe member-invested pension schemes, or Mips, would be a catchier alternative.

Not all in the industry welcome the idea at a time when Sipps are more high profile than ever. Standard Life marketing technical manager John Lawson thinks the idea is bizarre and says Standard is highly unlikely to rebrand its Sipp , which has taken 1bn in the nine months since launch. Standard estimates this equates to between 40 and 50 per cent of all new business in the Sipp market this year. Lawson says: “After A-Day, it is still a pers- onal pension and self-invested so what is the point?”

Central Financial Planning director Ian Smith, a member of the SPG, says: “The rationale is that self-investment has connotations of investing in your own business whereas member-directed should be clearer. Most people know them as Sipps so you are not going to change that overnight.”

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