View more on these topics

Widows criticises Sipps as ‘asset-gathering vehicles’

Scottish Widows has accused providers of switching clients from low-cost personal pensions into expensive, opaque Sipps.

Head of pensions marketing Peter Glancy says many self-invested personal pensions are “asset-gathering vehicles” for in-house funds and predicts that some providers will be forced to revisit sales when Sipp regulation starts next year.

Widows is about to pilot a Sipp-equivalent offering with IFAs ahead of launch next year. The product, which will not fall under Sipp regulation, will create a personalised unit-linked fund for each client, enabling them to choose in-house, externally-managed and property funds. It will also be able to hold protected rights’ money.

The three-tier charging system includes a product charge that decreases as the pension pot grows. An investment charge will vary according to the complexity of the investments and will be calculated as a percentage of the annual charge.

Glancy says the flexible advice charge, negotiated up front by the adviser, encourages fee-based advice.

He says Widows deliberately avoided rushing out its new pension offering after A-Day.

Glancy says: “We saw the risks of what everyone else was doing. Lots of people are moving out of low-charge products into high-charge, opaque contracts. Some of the Sipps operated by our competitors are just asset-gathering vehicles. With this product there will be no bias towards our in-house funds.”


Burke adds blue chips to UK aggressive fund

Invesco Perpetual UK aggressive fund manager Ed Burke has more than doubled his large-cap exposure in the last year, He has added Royal Dutch and Shell, BT, Rio Tinto, Barclays, HSBC and ICI to his top 10 holdings, saying he is finding better value in large caps than small and mid-caps. The fund holds 24 […]

Life business spinning on magic roundabout

The buoyant new business results being paraded by life offices are “absolutely meaningless” and reflect the “magic mushroom roundabout” of high commission, low persistency rates and destroyed capital plaguing the industry, says independent consultant Ned Cazalet. Product providers benefited from an A-Day sales surge, with Norwich Union seeing a 43 per cent increase in UK […]

Advantage points

It is increasingly rare for there to be real innovation in our markets today, with replication the leading force. That is just one of the reasons to welcome Advantage’s new shared equity product – that is not what the firm calls it but that is what it does so that is what we will call it.

Go to work on an ego

Lifesearch rent-a-quote, sorry, head of protection strategy Kevin Carr was so impressed with his recent Profile in MM that he requested an extra 10 copies of the quality publication to distribute to family and friends. At least, that is what some have guessed they are for. Others suggest that Carr might be wallpapering his bedroom […]

Value for money in DC pensions

The Pension Policy Institute (PPI)’s recent report “Value for money in DC pensions” tries to identify factors by which people can assess whether their pension offers fair value for money (VFM). Fiona Tait provides an overview of the findings. Positive Outcomes It is extremely hard to assess VFM in a pension. Press activity naturally focuses […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm