This has been done so that focus can continue on its platform sales. This is a clear move from one tier to another, although the distinction is not always that obvious.
Where is the line?
The designation of platform-only Sipps should not be a difficult process, and this tier should be easy to understand. A number of platform-only Sipps do exist.
There are also those that can also offer access to discretionary fund managers. There are others that can allow commercial property purchases in addition to this, but many of these limit their property proposition by not accepting joint purchases, property syndicates or property mortgages.
Others will limit property exposure to the UK or UK-based legal systems to ensure understanding of key title concerns, taxation issues and to keep the asset within the FCA’s definition of a standard asset.
At the other end of the scale, factor in those operators who may allow unregulated collective investment schemes, unconnected third party loans and unquoted equity in addition to standard assets, but limit these by investment party domicile or a fixed proportion of the Sipp assets, and you have a multi-tier market where the number of levels seems endless.
However, at the top end of the scale, I’d suggest there are no longer any true full Sipp operators. To allow unlimited asset acceptance would require a knowledge base and expertise in all asset classes, which must be near impossible.
So how many tiers are there in the Sipp market?
I would suggest almost as many as there are remaining providers.
The challenge for the intermediary is making sure they are aware of exactly what the Sipp operator’s proposition is, what their future proposition will be, and that it will always meet their clients’ requirements.
Martin Tilley is director of technical services at Dentons
