With such a large number of SIPP providers on the market, what do advisers look for when choosing the best SIPP provider to work with? Knowledge and service are now considered far more important factors than price alone.

Martin Tilley, director of technical services for Dentons, said that, when choosing a SIPP provider, advisers value factors such as staff knowledge and integrity more than price.

The poll found staff knowledge was valued most highly by 54 per cent of advisers, with 52 per cent saying integrity and ease of doing business were most important when choosing a bespoke SIPP provider. However, Mr Tilley noted that 36 per cent of advisers said price in the bespoke end of the SIPP market can be a barrier to entry, adding: “With the implementation of the retail distribution review, the increased transparency surrounding fees and what investors are paying for is likely to make these conversations easier for advisers.”

On the upside, the market appeared to have room for continued growth, as 64 per cent of advisers interviewed expected to increase their bespoke business. Meanwhile, a White Paper from pensions e-platform Origo highlighted how the complicated Sipp transfer process was hindering service to advisers and placing the reputation of the market at risk. Paul Pettitt, managing director of Origo, said: “Our research has shown a typical transfer process for Sipps is laborious, time-consuming, inconsistent, costly and lacking in monitoring and service level agreements.”

He said there was a clear need to automate the re-registration of assets to enable SIPP platforms to meet their requirements under TCF and RDR.

Original Article :FT Adviser

By Oliver Haill | Published Oct 31, 2012 |