Technical support
Consider what level of technical information and support is available from the Sipp provider and how well trained and knowledgeable the staff are. Are they able to answer queries clearly and concisely and, if more complex pension planning is required, is there someone at the company that advisers can talk to?
The provider’s website should provide current and useful information on all aspects of Sipps and ideally providing advisers with online information on their client’s valuations, transfers and contributions, and benefits taken, if appropriate.
Clear and easy to understand literature is another key area for advisers servicing a client’s Sipp pension requirements as this will help reduce errors and omissions and reduce risk of delays that could affect investment timing.
The drivers used by advisers to select a Sipp provider today have changed greatly. Where previously advisers may only have considered a few key areas including investment choices, fees and service, they now have to consider a number of factors, not least whether their chosen Sipp provider has the financial stability and is operationally robust enough to meet both the forthcoming capital adequacy rules and the third thematic review of Sipp providers.
Poor selection of a Sipp provider is likely to force an adviser to find a replacement at some stage, which brings additional costs to both the adviser and their clients. An additional compounding difficulty could be in finding a provider that is both willing and able to accept the full range of a client’s current holdings, as a new provider may be reluctant to hold certain asset classes already held within the client’s portfolio.
It is therefore important for an adviser to try and select a provider that has the choice, desire and capability to not only offer a Sipp in the future but also offer a Sipp with the amount of flexibility required for your clients’ future needs.
Martin Tilley is director of technical services at Dentons Pensions
