There is also the question of cost. A pre-emptive move would need to be justified and there will be costs associated with the new Sipp vehicle as well as the costs of transfer/re-registration, assets and any wind-up fees from the old provider.
On consolidation, any resulting need to transfer from one provider to another is usually done at little or no cost to the client. The merging of two businesses is not always a bad thing and there is always a chance that the new provider may offer similar or better features and lower costs. Indeed a “best of both worlds” would be the ideal outcome.
However, it is probably best practice for an adviser to be aware of their clients’ exposure to the various Sipp operators and to continually monitor those providers carefully so that their propositions are known and can be compared against the immediate and future needs of the client.
Market commitment
It would also be prudent to align with Sipp providers that have demonstrated commitment to the market so that in the event those clients are subjected to a move that may impact their future Sipp requirement, an alternative operator is already in their sights.
Martin Tilley is director of technical services at Dentons Pension Management
