Scottish Life is poised to enter into the Sipp market, promising that, unlike rival offerings, customers will only pay for what they need.
The product, which laun-ches on December 4, is effectively built on top of the firm’s individual personal pension product, which has been rebranded the pension portfolio.
The Sipp operates a twotiered charging structure – £300 a year for online investments and £550 a year for full investments. Clients opting for online investments will have access to over 1,000 funds through ScotLife’s fund supermarket and the ability to trade in stocks and shares through Selftrade for an additional transaction charge.
Other permitted investments, such as UK commercial property, Government and corporate bonds, and bank and building society deposit accounts, will also be available.
High-net-worth clients will have access to a panel of discretionary fund managers, including Cazenove Capital Management and Rathbones.
For full investments not available online and requiring an application form, there is a fee per transaction of £145 and a £145 annual holding fee.
IFAs advising customers to go into the Sipp can be remunerated using the financial adviser fee, whereby advisers agree with the client the cost of the advice at the outset.
Scottish Life head of individual business Barry Shields says: “This element is unique and is a clear benefit to IFAs from a TCF context because there is proper governance.”