Online stockbroker Raymond James Investment Services has created a self-invested personal pension (Sipp) which enables advisers to establish and manage their clients portfolios online.
This full Sipp provides access to all investments that the Inland Revenue allows for Sipps, except commercial property. It has a low minimum investment of £1,000 for a lump sum or monthly contributions of £150. There is no set up or annual management charge and no commission paid on the Sipp itself. Instead, charges are levied on the investments that people choose to put inside the Sipp and commission arrangements for IFAs can be negotiated out of this charge.
The product is available only to IFAs who affiliate with Raymond James. To do this, advisers have to bring £25m worth of business to Raymond James within six months. The company says that it is interested in building relationships with fee-based IFAs who focus on the high-net-worth end of the market.
The advantage that this Sipp has over some Sipps is that it can deliver real time prices, so Sipp investors know exactly what their portfolio is worth at any given time. It also enables advisers to keep track of the portfolio by logging on to one website, rather than going through a series of websites to find all the information they need.
Sippcentre's Sippdeal is a similar online Sipp product, but is aimed at the IFA market. It is also a full Sipp that invests in all Inland Revenue permitted investments except commercial property. However, it has an initial charge of £120 and although its minimum investment is the same as Raymond James for a lump sum, its monthly premium is higher at £200.