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Warning that Sipp clients will snub wraps

Wrap providers’ ability to take advantage of the natural restructuring of pension investment ahead of A-Day will be limited because many do not offer fully integrated pension facilities, says financial research company Defaqto.

The company says this lack of integration, together with doubt about what investments will be allowed, makes Sipp investors – the most obvious potential client group – less likely to take up wraps.

The report emphasises the difficulty of selecting wrap providers for IFAs and concludes that Raymond James, 7IM, Transact and Abbey have the most comprehensive product offerings.

It also finds considerable variation in charging structures and the range of funds made available by different platforms. Defaqto says the more established fund supermarkets have been developing their own seemingly transactional services to compete with wraps.

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