Type: Full self-invested personal pension
Minimum investment:: Lump sum 30,000, monthly 300
Investment choice: Standard Life Sigma pension funds, Standard Life Sipp bank account, Standard Life Sigma mutual funds and all other Inland Revenue permitted investments including and commercial property
Charges: Sigma pension funds annual 1%-2% a year with 0-3%-0.5% discount applied to investments of at least 50,000, self-investment initial 290, annual up to 200 for Sigma mutual funds only, annual up to 400 for additional investments, transaction charges 10-50 per trade capped at 300 a year, additional charges for property investment and withdrawal
Commission: Initial up to 5%, funded initial up to 3%, fund-based renewal up to 0.5% a year
Tel: 0845 60 60 036
Informed Choice director Martin Bamford says: “Standard Life has a good history of getting the servicing aspects of their products right. It should have a lot more control over product development and cost with this new Sipp offering which comes after three years of development.”
Considering the strong points and useful features of the Sipp Bamford likes the lack of restrictions on investments. He says: “Access to the Sigma mutual fund and Sigma pension platforms will please investors who want to consolidate pension funds without utilising the full investment capability of a Sipp.”
Bamford also likes the online valuation facility because he thinks this will simplify reporting and reviewing investments as it includes all scheme assets. He regards the remuneration structure as clear and likes the ability to deduct a fee from the pension fund or an additional fund management charge to create initial commission.
On the negative features of the Sipp Bamford says: “The solicitor and property manager used for any purchase of property within the Sipp must be selected by Standard Life. Also, the property purchase costs are currently unknown.”
He also feels the complexity of different product charging structures dependent on different investment facilities may deter some clients.
Considering the likely competitors, Bamford says: “Suffolk Life has a similar benefit of being a registered insurance company Sipp which enables immediate addition of tax relief on pension contributions.”
Suitability to market: Good
Adviser Remuneration: Good