Consumers do not care if IFAs are independent and pension advisers should tie to Sipp providers because there is no value in being independent, claims Merchant Investors head of sales and marketing Richard Ellis.
He says if an IFA is tied to one Sipp provider, this leaves the adviser free to concentrate on advising clients on what to invest in rather than wasting time shopping around for Sipp providers that offer similar products.
Ellis says: “What is the value in being independent? Consumers do not care that IFAs are independent. In the case of a tax wrapper, it is a question of whether you are interested in the cup or the coffee inside it. Most consumers are more interested in the coffee than the cup.
“Advisers are all scratching around trying to justify why they are with this company or that company when it does not really matter. They are taking their eyes off the ball. What is important is what the Sipp is invested in, not the tax wrapper itself.”
Ellis says MI is embarking upon an aggressive program of growth and wants to be the scale of GE Life before it rebranded as Tomorrow and was sold to LV.
Specialist Sipp provider MI has plans to double turnover every year for the next three years to reach its targets and is developing a trust-based Sipp and a syndicated property Sipp.