SIPP transfers are set to soar in early 2009 due to the ability to transfer protected rights, according to Fidelity FundsNetwork.
The platform expects this year's SIPP season, when investors transfer money into their SIPPs before the new tax year, to be one of the biggest on record.
FundsNetwork claims one in four SIPPs on its platform contain protected rights cash, with an average value of £26,000.
FundsNetwork believes as many as a third of investors with protected rights will transfer them into a SIPP following the introduction of new legislation on 1 October 2008.
The platform saw a major upturn in SIPP use during 2008, with applications up 64% and assets under administration up 23%. FundsNetwork attributes much of the increased interest to the new rules surrounding protected rights.
"Many protected rights holders are voting with their feet - where they are not shackled by exit fees they are looking to shed existing funds and choose SIPPs instead," says Fidelity's head of retail sales, Peter Hicks.
"Given the rules changed less than six months ago, and in that time we've seen yet more market volatility, this is very encouraging and could well be a significant trend in the run up to the tax year end."
FundsNetwork expects SIPP sales and transfer volumes to hit new records in the coming weeks as investors rush to transfer their protected rights before the new tax year.
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
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