Among those that returned to the survey this year, after an absence last year, are Ebor Trustees, IPM, MC Trustees, Nucleus, Organon, Westerby and Zurich.
Plans available
Table 1 gives an overview of all the providers who took part and all their available plans. It outlines the core details of the providers, including minimum investment requirements, current capital regime and whether there are any links to platforms. Interestingly, there are still a few providers who do not provide online valuations, some claiming it is not applicable. Although whether this is a necessary requirement is unknown, and depends on the type of Sipp offered.
The Table also shows whether a Sipp is simple, mid-range or full-range. Although there are no official definitions from the regulator, this is based entirely on providers’ house views on how they class their Sipp. Chart 1 breaks down the types of plans, with 16 per cent simple Sipps, 20 per cent mid-range and 45 per cent full-range plans on offer.
With regards to being platform-linked, the Table shows 20 plans have no links to platforms, while nine plans did not disclose the information. This, based on our figures, adds up to nearly 40 per cent of the Sipp market that is currently unavailable on platforms. With platforms growing in popularity with both advisers and investors alike, this may have to change in the future.
John Moret, owner of MoretoSIPPs, a specialist consultancy for the industry, says that platforms have now woken up to the opportunities available in Sipps. “There is still work to do and some investment to make, but certainly the majority of platforms have refocused on Sipps,” he says. He says now is the chance for someone to take a step ahead in the platform market. “For some platforms, the challenge will be drawdown. Some are more advanced than others. There is still some way to go,” he adds.
Table 2 covers the data detailing growth in the Sipp market and how each provider is growing its business. The number of Sipps set up has risen 16 per cent from October’s survey. Notable companies include Hargreaves Lansdown, whose reported figure of Sipps set up rose from 25,000 in October’s survey to 34,000 this time. The number of Sipps lost fell by 6 per cent to 6,348, however many firms chose not to disclose this figure. The reasons for losing Sipps can be anything from retirement or death to poor service.
Significant growth
Total assets under management are up significantly from the last survey. Last year the figure was £101bn, but this year it has grown 33 per cent to £135bn. Keeping in mind some providers did not respond to the survey, the real figure could be much larger.
