News from the IPS Partnership

Monday 9 November 2009

The IPS Corporate SIPP from The IPS Partnership

The IPS Partnership, the leading SIPP and SSAS provider, with offices in Bristol, London and Manchester has unveiled a corporate or group SIPP. The IPS Corporate SIPP will compete with standard insurance company group personal pension plans (GPPs), with the investment management being carried out by discretionary fund managers. It incorporates all the features of a GPP and is an alternative to the Government's Personal Accounts, which are due to be introduced in April 2012.

Distribution will be via IFAs only, who will provide advice to employers and employees. They will be offered a range of funds covering different risk profiles, for example low, medium and high by the appointed DFM, with IPS providing the administration.

Commenting on the news, Richard Mattison, Business Development Director said: "The attraction of the Corporate SIPP to the employers is that tailor-made advice can be given to employees on their pension requirements. The costs are known in advance, with no open ended commitment to a final salary scheme and associated costs. The Corporate SIPP enables access to specialist investment management services from Discretionary Fund Managers. It is the most flexible of pension arrangements available. From an employee's point of view, the levels of contribution paid are open. Should an employee leave service, his or her pension can remain in the Corporate SIPP or be transferred.

"The RDR will bring an end to the high commissions that insurance companies have been paying to IFAs for selling GPPs. Advisers' remuneration is likely to be similar for both GPPs and Corporate SIPPs."

Andrew Denham Davis, Director of intermediary sales at Brooks Macdonald added: "The proposition of a corporate SIPP which can access the enhanced investment skills of a discretionary fund manager is an appealing option, especially for the high level management tiers of an organisation who want to engage more actively in their retirement planning. We feel the market for this product will develop considerably over the coming years"