The company says its personal pension plan offered much of the flexibility of a Sipp but FSA rules restricting investments in unregulated collective investment schemes like syndicated prop- erty funds to 20 per cent of policy value posed problems for some advisers.
Head of marketing Malcolm Murray says: “We kept deferring adding a Sipp because there were signs that the Government might lift some of the restrictions applying to the personal pension but we decided that we could not wait any longer.”
CWC Research senior partner Clive Waller says: “The vast majority of clients only need a personal pension and Transact’s wrapper was much more of a real Sipp than many of those calling themselves that. There is such snobbery around the Sipp label that I guess Transact has had to bow down to this.”
The Turris Partnership managing director Brian Steeples says: “It is a marg- inally helpful move but, from our point of view, the personal pension plan has always offered enough flexibility and I would not exp- ect there to be massive demand.”