Advisers stand to reap the benefits of allowing protected rights investment in SIPPs, but life offices and insurance companies will lose out, Suffolk Life's John Moret says.
The Department for Work and Pensions (DWP) today gave the go-ahead to the new rule, which allows protected rights into single self-invested pension arrangements, from October. Previously protected rights - funds built up from National Insurance rebates when contracting out of the State Second Pension -could only be transferred to a stakeholder or other appropriate personal pension. It is estimated there is around £90-100bn of protected rights is in the market, mostly tied up in insurance companies and often in closed funds. Moret says: “I think protected rights have been overlooked a lit...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
