Pensions strategy director Adrian Boulding says the move is driven partially by the onset of personal accounts in 2012, which he believes will make many cheap group personal pensions defunct.
He recognises concerns in some parts of the market, expressed most vocally by Scottish Life, that it may be difficult to reconcile group self-invested personal pensions with the FSA’s treating customers fairly rules if lower-paid employees face a high base charge for investment flexibility they do not use.
Boulding says these difficulties can be overcome by operating a graded charging structure. He says: “Group Sipp is what we are getting excited about. With personal accounts on the horizon, which is effectively a cheap GPP, we need to look at what we could offer that would better this. It is essential from a TCF perspective that people should not pay more for extras that are irrelevant for them.”