Aon Consulting has established the self-invested personal pension (Sipp), a full Sipp that enables investors to become a joint trustee of their own pension.
The Sipp allows investments into any Inland Revenue permitted investments, such as stocks and shares, Oeics, unit trust, futures, options and commercial property. Sipp members can manage their pension investments themselves or appoint an adviser to do this on their behalf.
There is a set-up fee of £500 and an annual management charge of £500. Property transactions are charged on a time cost basis, with a minimum initial fee of £400 and a minimum annual charge of £250.
Sipps traditionally attract quite wealthy clients and this Sipp is no exception, serving a different market to low cost Sipps that have no set-up fee.
This Sipp is similar to Teather & Greenwood's (T&G) recently established Sipp, but the T&G product has a lower initial charge of £350 and a lower annual management charge of £400. However, it does not give Sipp members the comfort factor of being a joint trustee, with the ability to sign cheques themselves. This feature is only available through a handful of Sipp providers, including Pointon York.
The T&G Sipp charges for commercial property transactions, but on a flat fee basis, with an initial charge of £500, rising to £750 if Sipp members use their own solicitor. The minimum annual management charge of £150 increases to £300 if members do not appoint a professional property manager. This means the charges may potentially be lower for property transactions with the Aon Sipp, although this will depend on how much work it entails.