Selestia has entered the pensions market for the first time after receiving the relevant permission from Her Majesty's Revenue and Customs (HMRC).
The online business solution, more associated with investment products such as ISAs, PEPs and investment bonds than pensions, says the Selestia Collective Retirement Account (SCRA) will be available to advisers from today, having received its permission from HMRC on Thursday.
Selestia says A-Day has been a catalyst for substantial change in investors attitude towards retirement planning, adding the arrival of open architecture platforms into the pensions market has made the role of fund supermarkets an increasingly important one.
It suggests Self-Invested Personal Pensions (SIPPS) and other more niche investment vehicles will now be taking a back seat, as retirement planning is not just about the final destination anymore.
The SCRA wrapper plans to provide access to a wide range of investment propositions from over 60 fund managers, with investments allowed from a number of sources including individuals, employers, third party and HMRC contributions.
Selestia, a subsidiary of Old Mutual, says it has built the new venture from scratch to avoid the legacy issues of other “bought off the shelf” products, and aims to provide a clear and transparent retirement solution to give advisers extra choice in the market.
Bill Vasilieff, marketing director at Selestia, says: “The launch of the SCRA has been an enormous build for us. From today advisers will be able to make lump sum payments and transfer existing personal or company schemes to the SCRA, including protected rights.”
Over the coming months Selestia says it is planning to add regular contributions to the account, along with a contracting out facility from the State Second Pension (S2P).
Vasilieff adds: “Retirement planning is a journey not a destination, and the SCRA as one of the first new pensions provider post A-Day, is well placed to capitalise on this.”
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