View more on these topics

Sipp mis-buying – not misselling – is the problem, says Vantis

Vantis, the AIM-listed business advisory, tax and accountancy firm, is rejecting warnings from some IFAs that Sipps could be the subject of the next mis-selling scandal, claiming instead that investors have bought into them sometimes in spite of advice that they are not the right vehicle.

The company claims the determination of some people to invest in Sipps, in the face of recommendations to the contrary, is more a case of mis-buying than of mis-selling.

Vantis Financial Management director Steve Harvey says: ‘‘We have been approached by a number of people who think they want a Sipp because that’s what they’ve read about in the press. They like the idea of managing their own pension investments, but fail to take into account the associated costs and whether the potential benefits merit the sometimes high outlay.’’ In fact Sipps had been around for some 16 years prior to A-Day but the hype of pensions simplification brought them to the fore – with a lot of providers jumping on the bandwagon to supply a product the market seemed to be clamouring for. The pull, it seems, has come as much from investors as from providers pushing their products at the risk of mis-selling.

He says: ‘‘Sipps can be costly to set up, with high annual charges, and are really only of interest to people who want to devote time to managing their own financial affairs. There are huge numbers of investors out there paying into a Sipp, for whom it’s a completely inappropriate product. And in many cases, it’s no one’s fault but their own.’’


The jewel of the nil

Nil-rate band planning for inheritance tax can be a very effective strategy.

Property Special Report: Correlation street

Three key words for property investors are location, location, location. For investors who want to reduce the level of risk in a portfolio, three important words are diversification, diversification, diversification.

Ethical first from Seven

Seven Investment Management has introduced its first ethical fund in response to the growing demand for funds that do not compromise an investor’s principles.

KPMG alters web report in dispute over ‘IFA’ definition

KPMG has responded to industry pressure by amending the wording of a report published on the FSA’s website to avoid confusing consumers with its use of the term “IFA”.IFA Promotion chief executive David Elms contacted KPMG to request that its report wording be changed, saying it was at risk of misleading consumers over what constitutes […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm