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Regulation has bolstered faith in Sipps, claim IFAs

Transparency of charging and client confidence in self-invested personal pensions has improved since regulation came in.

In a survey of 131 advisers conducted by Skandia, half of those questioned said transparency of charging had improved under Sipp regulation, while 43 per cent said regulation had boosted client confidence in the products.

The ability to compare Sipps to other types of pensions had improved by 44 per cent. But nearly a third said the amount of time spent on compliance and administration was worse under the new regime.

The level of control over investment strategy was rated as very important, with nine out of 10 saying this was a key factor. Price was important for 56 per cen and the ability to hold commercial property as an investment for 55 per cent of clients.

Skandia head of pensions marketing Nick Bladen says: “We have always said that Sipps should be placed on a level playing field with other types of pension, and that advisers should be able to fairly compare them against other choices so that they can determine what type of pension best suits each individual client’s needs.

“Clearly, regulation has improved that although there is still some way to go. Extending regulation across the board, from pre-sale projections to post-sale disclosure, is the only way to truly achieve that.”

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