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Advisers predict big surge in Sipps

Advisers are expecting Sipp business to take a significant upturn after A-Day.

Research by Morgan Stanley Quilter shows that over 80 per cent of IFAs have seen an increase in self-invested personal pension business in the last year and 70 per cent believe it will increase after April 6, 2006.

They cite the transparency and flexibility of Sipps as key drivers of the increase.

The survey, which collated the views of over 200 advisers, found that 52 per cent are dissatisfied with the investment options currently available within personal pensions.

Seventy-nine per cent say they will use property loans within Sipps, reflecting interest in the eligibility of residential and buy-to-let property for Sipps after A-Day. Fifty-nine per cent will recommend funds of hedge funds and 47 per cent will look at investing directly in gilt strips. Seventy-three per cent of advisers expect to use discretionary managers more.

Morgan Stanley Quilter’s discretionary service is available within Standard Life’s Sipp.

Head of onshore branches David Loudon says the group has been looking to link up with other providers and further announcements are expected in the next few weeks.

Loudon says: “The main strategic focus here is the window between now and A-Day and probably the 12 months after A-Day. The changes to the Sipp rules have happily coincided with an improvement in the stockmarket and we are encouraging people to not just focus on property.”

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