Robert Graves, head of pensions technical services at Rowanmoor, makes the point that commercial property is less likely to be seen as ‘untouchable’ by other operators if a transfer were needed. “The Sipp industry would argue that it does not matter that property is not liquid as it is likely that there will be Sipp operators who would take over a portfolio of Sipps holding commercial property,” he says.
Trouble ahead
The FSA’s intervention has shaken up the industry and prompted advisers to be more wary of Sipp operators. Several providers noted a ‘flight to quality’, something likely to continue as advisers ponder who will remain once the rules change.
Advisers looking to place business now must be confident that their chosen provider will remain in business; otherwise a transfer might be necessary once the rules change.
Never has there been a more important time to perform thorough due diligence – for existing clients and new Sipp investors. Everybody knows it is the adviser’s responsibility to ensure investments are suitable; Sipp operators will now come under a greater spotlight too.
