Advisers selling SIPPs rise by third

Almost a third of advisers who did not undertake SIPP business before A-Day have advised on the products since April 2006, according to research by LV=.

A survey of 250 advisers shows 27% have increased the amount of SIPP business they do, including 23% who have seen a fair rise in business and 9% who have a lot more business than before.

Ray Chinn, head of pensions at LV=, says: “The legislative changes post A-Day and the increased confidence of SIPPs being a regulated product have made them more appealing, and they certainly seem to be ‘the new black’ at the moment. Where once SIPPs were thought of as niche products, they have now taken centre stage."

However, he warns advisers must remember SIPPs do not suit all clients.

He says: “The interest in them is good news for pension planning in general, but advisers must ensure suitability of the product. In many cases, however, SIPPs can provide a flexible and low-cost option to allow clients to hold pension funds.

“All financial advisers should be exploring SIPPs as a real alternative. Some of the packaged SIPP products, linked to investment platforms or offering easy access to discretionary management services, can work particularly well in terms of providing investment flexibility while keeping costs down.”

The figures echo research by SIPP provider Fidelity FundsNetwork in December last year, which shows a quarter of advisers believe regulation has significantly contributed to new SIPP business.

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