View more on these topics

Sipps go ballistic with £2.5bn sales

Sipp sales have rocketed since A-Day to become a £9bn a year business but group Sipps have failed to take off so far, according to senior industry figures.

Speaking at a Money Marketing Sipp round table, Standard Life head of pensions policy John Lawson pointed to recent figures from the Association of British Insurers which showed that its members had written £2.5bn of Sipp business in the first half of this year and sales are on track for Sipps to become a £9bn a year business.

Panellists also highlighted the recent news that Sipp provider AJ Bell is writing £120m of Sipp business a month.

Hargreaves Lansdown head of pensions research Tom McPhail said: “Sipps are going ballistic. An awful lot of money is coming from discontinued insurance contracts.”

He said even providers that had dismissed Sipps before A-Day had now launched their own offerings or were planning to do soMcPhail said: “We have had several providers rubbishing Sipps, saying they were over-hyped and over priced but now they are saying they are bringing one out and playing catch up. Because they were slow off the mark, this is a defensive strategy.”

But in stark contrast, Richard Jacobs Pensions & Trustee Services principle Richard Jacobs described group Sipps as a “misnomer” and McPhail argued that the volumes are not there at the moment.

Hornbuckle Mitchell director Neil Marsh said he is doing a steady stream of group schemes but predominantly for property purchase.

Lawson said a lot of group Sipps being set up by Standard Life are for property purchases but argued that group Sipps are essentially GPPs and needed to be priced accord- ingly. He said: “To some extent, they are a misnomer but we need to run group Sipps more cleverly and at similar charges to GPPs to attract business. We are seeing lots of big business schemes move to Sipps and wealthy employees are cert- ainly interested in it.”


Swiss Re call to axe cancer conditions

Swiss Re is calling on the Association of British Insurers to scrap two of the cancer conditions covered under its new critical-illness definitions so consumers cannot claim for them, Money Marketing understands. The reinsurer is believed to have told the ABI that it wants the cancers to be taken out of the conditions covered before […]

SimplyBiz member meetings see record bookings

SimplyBiz says it has seen a record number of bookings for its autumn round of member meetings. The events feature presentations on a number of topical subjects including the effective review of with profits, increasing protection sales, the truth about critical illness, a will writing workshop and compliance update. SimplyBiz marketing director Matthew Timmins says: […]

ABI chief blames contracting-out problems on IFAs

The Association of British Insurers chairman has effectively washed providers’ hands of contracting-out misselling, saying responsibil- ity lies at the door of advisers. Speaking at a Treasury select committee meeting this week, the ABI’s Keith Satchell responded to MP’s concerns about the potential misadvising of some groups to contract out, saying adv- isers handled the […]

Sweet talk

I am writing in reply to the article about pension transfer “sweeteners” by Robert Reid in the September 28 edition of Money Marketing. I find his statement that “there is no doubt that if a member is offered a bribe and/or enhanced transfer value to leave a scheme, then he or she is getting the […]

9 October thumbnail

Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.


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