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IFAs see online Sipps as alternative to personal pensions

Research carried out by AJ Bell has found 99 per cent of advisers view online Sipps as an alternative to personal pensions.

Almost all of the 300 IFAs asked say they would be happy to recommend Sipps as an option where charges apply according to the investment flexibility required by the client.

AJ Bell says that as Sipps operate on a factory gate priced model the products fit well with the FSA’s calls for advisers to identify and justify any cost associated with increased investment flexibility and control.

AJ Bell marketing director Billy MacKay says: “The FSA thematic review on pension switching created a huge amount of speculation about Sipp suitability. This research shows that advisers are allowing for the FSA’s recommendations and see online Sipps as a mainstream solution for many of their clients”.

“The consolidation market remains buoyant and the shift from traditional personal pensions to low-cost Sipps shows no signs of letting up.”

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