Suffolk Life has launched a trust-based Sipp product which will allow customers to self-invest protected rights money.
The firm’s existing trust-based Sipp will be closed to new business from November but customers will be able to remain in the Suffolk Life Deed Poll scheme if they wish.
However, they will have the option to transfer into the new Sipp, which will be available in late October and allows a wider investment choice for ordinary pensions benefits, as well as the option of self-investing protected rights.
Speaking at the launch of the MasterSipp, Suffolk Life chief executive Henry Catchpole says he expects the Sipp market to grow from its current £40bn size to £500bn and says this presents a real opportunity for advisers and providers. Estimates value the protected rights market at around £100bn, with most of this money invested in insurance company funds, but there are very few Sipp providers offering a self-investment option for this market.
Pal Partnership business development director Richard Mattison says: “The DWP paper will clarify the position on protected rights but in the meantime Suffolk Life have stolen a march.
“This is a halfway house but it is still a bold move. It is as good as you can get without further details.”
AJ Bell chief executive Andy Bell says: “It is certainly an exciting market. There is no doubt that some advisers may want to wait until there a more products that offer this on the market before making a decision of who to go with.”