Talbot and Muir’s Ms Trott agrees the D2C approach will not work with Sipps. ”Just because an end client knows about investments in general doesn’t mean they are fully aware of all the intricacies of investing within a Sipp and the implications of their actions such as taking benefits and the impact of death benefits this may have,” she adds.
The Sipp industry is currently booming but there is lots of talk in the air about consolidation. And it is no surprise that there have been acquisitions already after the FCA announcements, but how many more are yet to be seen. Many commentators believe there will be a steady pace of consolidation before September 2016. Rupert Curtis, managing director of Curtis Banks, says “We view the Budget 2014 changes as a positive factor for Sipps, with the increased flexibility available, and expect to take full advantage of this with new products and innovations. We see the current Sipp market as providing substantial opportunities for our business, but others will suffer.”
April 2015 will be just the start of a change in the pensions landscape, but there is still a long way to go in the Sipp space and September 2016 will show the full extent of it. Now the need for a retiree to have an annuity has been abolished, there is even more of a need for advisers to be finding the best pensions options for clients. However, for now, the industry must wait to see the full impact of the 2014 Budget on pensions.
