Analysis of Defaqto data by Fidelity FundsNetwork, a SIPP provider in the UK, has revealed that despite the post A-day open-architecture environment, not all self invested personal pensions are truly open.
The analysis has showed that while there is a growing trend towards flexibility and choice for pensions, some self invested personal pensions (SIPPs) still require a minimum investment into insured funds. Of the 72 SIPP providers listed on Defaqto, FundsNetwork found that at least one in eight have a contract which requires a minimum investment into the company insurance scheme.
Anecdotal evidence shows that the average case size advisers are seeing for new money into SIPPs is GBP138,000. On this basis, investors opting for the provider with the highest minimum will see more than half of their money go into insured funds.
David Dalton-Brown, head of Fidelity FundsNetwork, said: In our post A-day landscape of flexibility and open-architecture, it is surprising to see that so may providers still continue to put minimum fund requirements in place. Investors should be free to choose where they invest their SIPP and take advantage of the benefits that a truly open SIPP can offer.