UK pension provider Xafinity is offering a low-cost market-wide Sipp that may allow financial advisers to include structured products as the underlying investment.
The firm has launched SimplySipp, a new product allowing IFAs to choose any platform, wrap, fund supermarket or investment manager to invest and manage their client's pension funds; advisers will be allowed to choose any deposit account, structured product or trustee investment policy for the underlying investment of the Sipp, although structured product investments will be subject to review by the provider.
"IFAs and clients want choice; they don't want to be coerced into using the Sipp provider's investment partners," said director of self-invested pensions at Xafinity, Andy Bowsher. "The SimplySipp product has been designed to allow the IFA total freedom to choose any mainstream investment product from any provider."
Xafinity said no penalty or fee will be applied for any IFA client going 'off panel' when choosing the underlying of a SIPP. The firm said the product will include full retirement options including flexible and capped drawdown at retirement, and will charge members a £250 set-up fee, with no additional charges for contributions or transfers in.
The firm said the new product is part of its RDR offering.