View more on these topics

American Express wraps up Sipp

American Express Financial Services Europe has established a self-invested personal pension for its wrap account.

The adviser service Sipp provides access to a range of investments including Oeics, unit trusts, shares traded on the London Stock Exchange and Aim, plus cash awaiting investment. It also has a phased retirement option where the investment is divided into segments which can remain invested or be used for income drawdown.

There is no minimum investment for the Sipp but clients will need to have a large enough amount to make investing worthwhile after the deduction of charges. An annual charge of between 0.3 per cent and 0.5 per cent is payable for the wrap service and the Sipp charges are payable on top of this. There is a £200 Sipp set-up fee, an annual charge of £340 and a drawdown charge of £120 but these will be reduced until April 2005.

The addition of a Sipp widens the appeal of the American Express wrap proposition, bringing it in line with other recent entrants to the wrap market such as Abbey. Abbey enables clients to choose a Sipp-only wrap option at an annual cost of £300 &#45 half the cost of its full wrap service &#45 but American Express does not have a similar arrangement. However, as the point of a wrap service is to bring all investment types and wrappers under one roof, a Sipp-only facility may not be missed by potential investors.

The Abbey wrap Sipp, based on the James Hay Sipp, does have wider investment choice than the American Express product as it allows investment in commercial property. Although more features, such as commercial property investment, may be added to the American Express product at a later date, IFAs will be more interested in what the product currently offers.

Recommended

Follow the trail

I have read quite a bit about the proposal to stop trail commission. However, no one has ever thought to ask life companies what they do with their trial commission? On leaving a tied position, all of my renewal commission that I had built up stayed with Abbey Life. It was not paid to another […]

The MTA

Life company networks that have received their MTA letterFriends Mortgage World, Legal & General, MGM Assurance. Life company networks that have not yet received their MTA letter Axa Assurance, Zurich. IFA networks that have received their MTA letter or VOP letter Bankhall, Banking-Insurance Services, Berkeley Wodehouse Associates, Burns Anderson, Enable,IN-Partnership, Interdependence, Lighthouse IFA, Mint, M&E […]

Out of context

• “It&#39s very exciting sitting beside a rock star, breathing the same air as him. Sometimes I even swap cups so I can drink from his.” – Very excited Lansons PR discusses rock star Richard Winder. •”He&#39s already so huge, I reckon he&#39ll be driving by the age of one.” – Birmingham Midshires PR Matt […]

PruFund clears with-profits fog

The PruFund investment plan is a single premium with-profits investment plan with a choice of two funds. The PruFund growth fund aims for growth by investing in global equities, property, corporate bonds, alternative assets such as convertible bonds and hedge funds, and cash. The PruFund growth and income fund invests in the same asset classes […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com