View more on these topics

A smart move from Pointon York

Pointon York – e-Sipp

Type: Online Sipp

Minimum investment: Lump sum £5,000

Minimum – maximum age: From birth to 74

Investment choice: One of five risk-graded SmartFunds portfolios – defensive, cautious, balanced, aggressive or aggressive Growth

Options: Unsecured pension/income drawdown, alternatively secured pension

Charges:  Annual £150, single contributions £45, transfers out £100, establishment of income drawdown £225, additional charges for income payment, annuity purchase and distribution of death benefits. All fees subject to VAT

Commission: Agreed between adviser and client


The e-Sipp is one of two lower-cost Sipps recently introduced by specialist self-invested personal pension provider Pointon York. Investment choice is limited relative to Pointon York’s other Sipp products to reduce costs. Investors can choose one of five risk-graded managed portfolios on the Praemium platform, known as SmartFunds. These are tailored towards defensive, cautious, balanced, aggressive and aggressive growth risk profiles.

Informed Choice managing director Martin Bamford describes this as a simple online Sipp offering access to a limited range of funds.  “It will appeal to IFAs for investors who want a very simple approach to investing their pension assets and want to delegate these investments to a competent third-party. The five funds available are the SmartFunds from Praemium, offering different risk rated investment options with automatic rebalancing.”

Bamford regards the Sipp charges as very competitive at £150 a year.  “There is an additional charge of 0.75 per cent a year for the funds and other charges for different activities within the Sipp, such as making single contributions or establishing an unsecured pension,” he says.

Turning to the potential drawbacks of the product, Bamford says: “The website does not provide any information about the cost of investing in the five available funds.  It is also unclear from the website how to apply for the Sipp online, although I understand that Pointon York are working to make this clearer.  

Discussing possible competitors, Bamford says: “The online Sipp market is already quite well established, with the main competition coming from the likes of Hargreaves Lansdown and Sippdeal.  IFAs might feel more comfortable using this online Sipp from Pointon York, which is known as an IFA provider, unlike the other online SIPP providers that mainly operate a direct to customer model.”

Summing up, Bamford says: “The concept behind the Pointon York e-Sipp is fundamentally sound, but more emphasis needs to be placed on the available investment options, as information on the five funds is very hard to find at present.  The core Sipp and fund charges look keen, but the additional Sipp charges could quickly turn this into a very expensive Sipp.”


Suitability to market: Good

Flexibility: Good

Charges: Average

Adviser remuneration: Good

Overall 7/10


Lenders report pressure to adopt MMR, says Boulger

Some lenders are claiming they have been pressurised into adopting some of the proposals in the mortgage market review, according to John Charcol senior technical manager Ray Boulger. In a 2011 market forecast report from John Charcol, Boulger says tightening criteria is probably a conscious decision of lenders but he claims lenders are reporting pressure […]

Living Time receives £450,000 Alico loan

Living Time is to receive a £450,000 loan from Alico to address liabilities of £257,000. Living Time’s latest accounts show the firm had unaudited net current liabilities of £257,000 as at 31 December 2010. The accounts say the firm is to receive £450,000 of working capital support from Alico by February 28 to enable it […]


FSA fines Barclays £7.7m for advice failings

The FSA has fined Barclays £7.7m for failures relating to the sale of the Aviva global balanced income fund and the global cautious income fund, which were first exposed by Money Marketing in April 2009. The FSA says Barclays is facing a further compensation bill of up to £42m on top of the £17m it […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm