Aviva’s announcement about on-platform SIPP’s – following on from those made by the FSA’s on client suitability – could limit investors choice and possibly restrict the growth in alternative investments held in a SIPP.

Aviva is set to launch a low-cost Sipps in response to the Financial Services Authority’s (FSA) concerns that some customers are paying too much in SIPP fees and would be better served on a platform.

Phil Ralli, senior marketing manager, said Aviva was developing an on-platform SIPP, which would have increasing layers of charges, to keep costs low for clients who initially only wanted to invest in funds and would not use investments that push up fees on full SIPPs, such as commercial property.

In February, New Model Adviser® reported the FSA had told SIPP providers it wanted clients with less than £250,000 transferred to cheaper arrangements.

Ralli said: ‘The FSA has concerns about the suitability of SIPP sales and customers taking out SIPPs but not using all the options they provide.

‘Some people might ultimately need commercial property but what we are trying to build is a proposition where people only pay for the options as and when they use them.’

Source : New Model Adviser®

Story by William Robins on Apr 23, 2012 at 10:38 –