2009 will be an interesting year for SIPPs. The collapse of interest rates will mean increased clarity in fee structures as certain providers won't be able to prop up their cheapish looking fees by relying on taking up to 1.5% of the interest rate earned on cash deposits.
Soon gone will be the days when SIPP providers restrict clients to cash being held in 1 default account because of the extra administrative burden this provides! Clients won't quickly forget the panics of North Rock, HBOS etc and will demand that separate chunks of £50k be held in separate bank accounts in organisations with unique FRN numbers. Customers will demand more from their SIPP providers - flexibility and diversification will be the watchwords! People will no longer be content to throw everything they have into equities, close their eyes and hope for the best. They will become ...
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