Skandia is planning to add a self-invested personal pension product to its pension range as part of its wrap development.
The company says it needs a Sipp offering because of the opportunities for IFAs which are presented by the widening of investment rules after A-Day and the benefits of consolidating pension investments.
ABI figures show a rapid increase in the amount of business transacted through Sipps, up by 17 per cent to £42.4m in the year to December 2003 from £36.3m over the previous 12 months. Most industry figures expect a greater increase in Sipp business once the new simplified pension regime is introduced in April 2006.
Multi-manager pioneer Skandia added a section 32 product to its range in the spring and says its Sipp proposition, to be launched this year, will consolidate its position in the single-premium pension consolidation sector. Details of charging structures and launch date will be released in the coming months.
This year has been a boom time for Skandia with its first-quarter sales up by 75 per cent over the same period of 2003 and assets under management reaching a record £17.2bn. Skandia Investment Management's total net retail sales hit £228m in the first quarter of this year. with only Halifax bringing in higher sales with £263m.
Skandia pensions marketing manager Billy Mackay says: “IFAs are increasingly focussed on opportunities provided by both the anticipated widening of investment rules after A-Day and benefits of consolidating pension investments. A Sipp is a vital component of our strategy and marks another step in the continued development of our wrap.”
Bell Lawrie White divis-ional director Bruce Angus says: “For IFAs looking to embrace pension opportunities, I would anticipate a strong app-etite for Skandia's offering.”