View more on these topics

Aegon explores group Sipp

Aegon Scottish Equitable has established a group Sipp aimed at employers with at least five employees.

Aegon Scottish Equitable says the plan is as simple to administer as a group personal pension and that many of the features are the same as its GPP. However, while some employees need a simple fully insured plan, other employees may require full self-investment and this plan caters for all requirements.

The product provides three methods of signing up – streamlined, full advice and direct offer. Streamlined removes the need for employees to complete application forms. Full advice method requires application form to be completed and is useful for employees who will be seeking advice on self-investment at an early stage. Direct offer is similar to the full advice method but recognises not every member will not receive full advice.

The company also uses technology called SmartScheme to save time in setting up a scheme. SmartScheme helps to implement the scheme from the set-up stage to paying contributions and daily management of the scheme.

The group Sipp has a minimum investment of a £2,500 lump sum or monthly contributions of £20. Scottish Equitable believes immediate self-investment will not be the priority for most new members, so the product has the option to start as a fully insured scheme then move to self-investment later on if they do not want to self-invest at the outset. A minimum of £25,000 must go into self-investment while £25,00 must remain in the insured element.

The insured option offers over 90 funds from 17 fund management groups, while those opting for self-investment have access to 997 funds from 43 fund managers through the online fund supermarket. A discretionary fund management service is also available, offering tailored solutions and other Sipp qualifying investment including UK commercial property are also permitted.

This Sipp may face competition from Standard Life’s Group Sipp, which also offers a fully insured option through Standard Life’s Sigma pension funds alongside full self-investment. Although the minimum investment for starting a Standard Life group Sipp is higher at £300 a month, £3, 000 a year or a £10,00 lump sum, self-investment does not depend on holding money in the insured funds. The minimum for regular contributions is also reduced to £100 a month or £1,000 a year for plan values of at least £50,000.


Marc gordon

The Co-founder and managing director of Close Fund Manage-ment says he has been accused of being too evangelical in his concerns about aspects of the industry but there is no doubting his feeling concerning the ‘huge savings dilemma’ and the general failure of with-profits funds. Interview by Matt Goodburn

FSA issues £455,000 PPI fine to

The FSA has fined £455,000 for failing to treat its customers fairly when selling PPI in a further sign the regulator is cracking down in this area.The FSA says it found the firm did not have appropriate systems and controls in place to minimise the risk of unsuitable sales.At this week’s Treasury select committee […]

Prime time

Our panel assess the FSA’s mortgage rules, the effect of a rate rise, the sub-prime market, proc fees and equity release


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 thought leadership.

    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