Skandia: Platforms could spell end for Sipps

Skandia says the need for Sipps will fall when advisers are able to manage a client’s pension via a platform.

Speaking at The Platforum V Conference, Skandia UK marketing director Nick Dixon said as the number of products available on platforms grew, they would increasingly be able to accommodate pension schemes.

Dixon said: “If you can manage and advise on pensions on platforms across a wider range of assets they would increasingly replace the need for Sipps because the money can be managed in other product areas and the simplicity of using a platform would displace Sipps or at least force some kind of convergence.”

Although currently annuities are not available via platforms, Dixon said that they should be connected to a platform in the near future through third party relationships, which would give advisers the entire view of a client’s investment and income.

He said: “Annuities should be connected to the platform and if they were, via a third party relationship, then you would have the entire income plan of that client.”