Manx stockbroker launches free-to-enter SIPP

Execution-only stockbroker JPJShare.com, a subsidiary of the Isle of Man company Rivington Street Holdings, has launched a SIPP with no annual management charge (AMC).

The SIPP, a white label product from Pointon York, will also have no set-up fee, no contribution fee, no transfer in fees, and no transaction fees for unit trusts or open ended investment companies (OEICs).

Lower salaries, tax, and property prices on the Isle of Man make the fee structure possible, Tom Winnifrith, chief executive of parent company Rivington Street Holdings, said.

Share trades within the SIPP are charged at £5.75 for online dealing and £7.50 for telephone dealing.

Investors can enter more than 2,000 retail funds, 80% of which have no initial charge for the purchase of units.

The stockbroker receives around one third of the fund managers' annual management charge on each fund invested in, or around 0.5% of the amount invested.

Charges for decummulation of the SIPP, such as arranging drawdown or annuity purchase, are levied by Pointon York.

Pointon York also handles the administration of annual pension statements and annuity illustrations, the cost of which JPJShare.com absorbes. 

JPJ.com's free-to-enter personal pension will go head-to-head with SIPPs from several major players which have launched low-cost, web-based, mass-market products this year.

Suffolk Life unveiled its mass-market SmartSIPP in July. James Hay launched iSIPP in January, whilst AJ Bell extended SippCentre, its low cost alternative, in February.