Fidelity FundsNetwork is to accept applications for SIPPs with protected rights from mid-September in advance of new regulations coming into force on October 1.
The platform will also provide advisers with early business illustrations for clients wanting to transfer protected rights, which are funds built up by being ‘contracted out’ of the State Second Pension.
Investors who transfer their protected rights across to their SIPP will enjoy a range of benefits, according to FundsNetwork. These include:
- Access to a wide range of investment options
- Access to the full range of self investment options within a SIPP
- Consolidating plans can enable a more coherent approach to investment allocation as well as reduced charges and easier administration
- For customers using (or considering) drawdown, transferring protected rights has the potential to boost drawdown funds and make the income easier to manage
David Dalton-Brown, head of Fidelity FundsNetwork, says: “The new regulation couldn’t have come into force soon enough. Investors will no longer have to suffer the frustration of having to split out non-protected rights funds or avoid transfers with any elements of protected rights.
“For advisers, there is the prospect of up to £100bn of pension money up for grabs, as many investors take the opportunity to review their old plans. This could lead to a significant flow of funds from older style plans into more modern vehicles such as SIPPs.”
For more information contact FundsNetwork on 0800 99 55 11 or visit www.fundsnetwork.co.uk
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