Private banker Duncan Lawrie is to launch a self-invested personal pension featuring investment choi...
Private banker Duncan Lawrie is to launch a self-invested personal pension featuring investment choices offered by the group's inhouse investment team as well as external managers.
Ian Stewart, a manager at Duncan Lawrie, said the offer was being kept low key, primarily because it features no commission.
He said: "This is not a launch from a major provider where you offer terms to attract large funds into a product. It is not something we are going to go out and market aggressively to intermediaries because there is no commission, but if they want to use a fee-based method, that is fine."
Administration costs for the Duncan Lawrie Sipp are the same whether internal or external funds are used. There is a £450 up-front charge and £600 per annum administration charge, both exclusive of VAT.
There is no minimum investment required to use the Sipp and a £100 charge is incurred for using drawdown with a basic £250 charge for property purchase, exclusive of other legal and administrative costs.
Stewart said Duncan Lawrie would take a fairly flexible approach to investment management charges but there is a default cost of 1% per annum.
"If someone came in with a massive fund we would consider doing something different but if the client wants to use an external fund the cost will be whatever that manager charges."
Stewart said the Sipp had been launched because Duncan Lawrie has a lot of assets under management with clients asking whether it provides a self invested pension.
He said: "It is both a defensive and offensive move because we realised our clients had a need for this product and might seek it elsewhere but also there was increasing demand from the accountants and solicitors our clients use, indicating a ready-made market." The administration for the Duncan Lawrie Sipp is to be handled inhouse.
Meanwhile John Moret, chairman of the Sipp Providers Group (SPG) has predicted the number of Sipp plans sold will rise to 0.5 million by 2010.
Moret, who in 1997 accurately predicted the number of Sipps in the year 2000 would reach 50,000, added that Sipps would be a crucial pensions vehicle for the 21st century.
He said: "Sipps were the success story of the 1990s. Around £15bn is invested in Sipps and I foresee a ten-fold increase in the next 10 years as they lose their elitist tag and costs fall."
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