Another paradox is that an investment that is non-standard for capital adequacy could be quick, easy and cheap to value, potentially making phased drawdown just as economical as for a platform Sipp. Term deposit accounts, including those with terms longer than 30 days – and so potentially non-standard – remain a feature of many Sipps.
Finally, there is at least one area where investments can be “standard” and at the same time bespoke and offer the potential to make phasing economical. For the larger funds typically found in bespoke Sipps, DFMs will offer a full discretionary service and may well target a natural yield to meet the member’s income requirement.
With a data feed in place and if there are no other hard-to-value assets, bespoke Sipps could be in a similar position to platforms to develop a slick phased drawdown solution.
Other background factors like the thematic reviews and capital adequacy have, directly or indirectly, been pressing bespoke providers to invest in technology – in systems, controls and automation – and changing the dynamic between platforms and bespoke Sipps.
Andy Leggett, head of Sipp business development, Barnett Waddingham
