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Intelligent Money eyes Sipp market exit

Exit signIntelligent Money is considering exiting the Sipp market to become an independent provider of standard personal pension plans.

The company says it is looking at re-branding its Sipps as flexible personal pensions to better reflect its position in the market.

The firm is in discussions with advisers about the potential change and says the shift has been prompted by recent high-profile Sipp firm failures.

In January, the Financial Services Compensation Scheme declared Sipp operators Stadia Trustees, Brooklands Trustees and Montpelier Pension Administration Services in default.

The Lifetime Sipp Company also went into administration in April.

Elsewhere, Berkeley Burke is facing legal action and a final decision is expected following a High Court case involving Carey Pensions heard in March.

Intelligent Money chief executive Julian Penniston-Hill says these issues stem from some Sipp providers accepting non-standard assets and working with unregulated introducers.

He adds Intelligent Money has never really been a full Sipp provider as it has only allowed standard investments and never accepted business from non-regulated introducers or the public directly.

Penniston-Hill adds: “We recognise advisers don’t want the reputational – and indeed real – risks of having clients placed with Sipp providers that may face serious financial difficulties due to very unwise decisions on the type of business they have accepted.

“By switching to standard personal pension plans, with all of the good Sipp functionality yet none of the bad, we feel that this clearly separates us from the activities of certain other Sipp providers.”

He continues: “Our Isas, investment portfolios and group pensions are not affected by this change. We are simply aligning ourselves to the correct product name for our personal pensions.”

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Justin Cash, Editor of Money Marketing

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. Don’t believe any tosh financial journalists write. they are as bad as journalists in any other field.

  2. Is Mr Penniston-Hall for real???

    This is the SIPP provider that allowed 766 of their clients to invest funds with the failed tin pot DFM Strand Capital, with most of the funds invested in a dodgy property bond.

    Intelligent Money are a big part of the problem.

    They may not have accepted business from unregulated introducers, but that’s only because their own staff were doing such a great job of putting their client’s fund at risk.

    Why anyone would use Intelligent Money for a SIPP or anything else is beyond me.

  3. ‘ very unwise decisions on the type of business’ in the case of working with unregulated introducers the phrase is criminal, unregulated introduction for designated investments is ‘bring about’ or ‘making arrangements for’ is regulated activity in breach of the general prohibition, being willfully blind in enabling these investment is culpable in facilitating a fraud

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