Seven Investment Management (7IM) has become a pension provider, launching its own Self Invested Personal Pension (SIPP) product on its UK platform this week.
The SIPP, which launched and is available only on 7IM's platform, allows investors to choose from a range of investments, including bonds, cash, structured products and exchange-traded products. Other investments available include managed pension funds, permanent interest bearing shares (PIBs), real estate investment trusts (REITs), equities including investment trusts and closed ended investment companies, as well as units in regulated collective investment schemes, though no non-standard assets will be permitted.
"Pension freedoms means that clients with their advisers should be looking at all products available to them to develop a retirement plan with the ultimate goal being that the client's retirement pot of money will enable the clients to enjoy the retirement that they have been saving for during their working life," said Verona Smith (pictured), head of platform at 7IM. "Becoming a pension provider in our own right underscores our commitment to offering a joined up retirement planning proposition which under pension freedoms is more important than ever."
Structured pension funds linked to equity underlying indices, systematic strategies and managed funds are not in scope, although variable and index linked annuities will be considered depending on client demand.
"The most appropriate product, which for some clients maybe some form an annuity, is dependent on the client's retirement plan," said Smith, adding that the management firm has put "huge amounts of resource, technology and investment into this launch to develop a very competitive offering".
"We also understand that, from a suitability point of view, it is important that we keep our open architecture approach and continue to make available other Sipps via the 7IM platform."
The 7IM SIPP will cost investors nothing to open and those who invest more than £75,000 face no annual fee. However, those with less than £75,000 invested will be charged £100 a year. Other charges include a £75 closure fee and a £50 levy each time an investor draws down funds.
7IM's move responds to adviser demand for cost effective and easy to access Retirement Planning Service with a fully integrated SIPP.
"The launch of our SIPP is a natural part of our evolution," said Smith. "The 7IM platform has the technology and flexibility to help us deliver that, and the introduction of our own SIPP enhances this further."
Smith is not new to structured products as before joining 7IM in 2013 she worked for Cofunds, UK's largest platform which carries structured products from different providers.
The new SIPP adds to the firm's existing offering which includes an asset allocated passive fund range, a multi-manager fund range, a selection of SRI focussed and funds designed to meet specific needs, as well as a range of 'smart passive' funds a range of model portfolios across the risk profiles which are available through the 7IM discretionary, managed investment, platform, and as well as other investment and open architecture trading platform. 7IM provides investment services to professional wealth managers, planners, advisers and private investors.
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