Pension firms are questioning proposals by the Department of Work and Pensions (DWP) to continue to prohibit protected rights funds from being invested in Self Invested Personal Pensions.
Sipp firm Suffolk Life says DWP proposals, put forward last week, mean protected rights funds can only be invested in insurance company funds, unit trusts, Oeics and with deposit takers. The firm adds in accordance with earlier legislation, SIPPs are unable to accept protected rights. Moreover individuals wishing to move funds from a contracted-out final salary scheme to a SIPP will have the entire transfer value treated as protected rights. Suffolk Life argues many Sipps are created with transfer values as a tool to add greater investment advantage. Under current proposals, however...
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