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7IM launches own brand SIPP

17 May 2018

Seven Investment Management has ventured into the pensions market with the launch of a new SIPP. 

The SIPP offers a range of standard investments including: Bonds; cash; cash funds; exchange traded products; government and local authority bonds and other fixed interest stocks; investment notes (structured products); managed pension funds; permanent interest bearing shares; real estate investment trusts; equities including investment trusts and closed ended investment companies; and units in regulated collective investment schemes. No non-standard assets are permitted, the firm said.

7IM will not charge clients a fee for establishing a SIPP, and clients with £75,000 or more will not be charged an annual SIPP fee. However, those with less than £75,000 will pay an annual fee of £100.

Clients with £75,000 or more will also not be charged for transferring in funds from other defined contribution schemes that have not been crystallised, but those below the £75,000 threshold will be charged £50 for a transfer. All clients will be charged £50 if funds being transferred are already in drawdown. Transferring out will be charged at £75 per cash transfer and £200 for in specie transfer, 7IM said.

Meanwhile, benefit payments range from between £75 for clients opting to review capped drawdown limits, switching from capped to flexi-access drawdown or crystallising their benefits to £135 per year for those receiving income from their SIPP.

Splitting assets following a divorce will cost SIPP clients £300, as will the payment of death benefits, the firm said.

Verona Smith, head of platform, 7IM (pictured), said: “Becoming a pension provider in our own right underscores our commitment to offering a joined-up retirement planning proposition. We have put huge amounts of resource, technology and investment into this launch to develop a very competitive offering.

“The launch of our SIPP is a natural part of our evolution. The 7IM platform has the technology and flexibility to help us deliver a Retirement Planning Service that we are really proud of, and the introduction of our own SIPP enhances this further.”

Smith said the SIPP followed adviser feedback stating how important it was for their client experience to have a cost effective and easy to access SIPP which is fully integrated with the 7IM platform.

Smith added: “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.”

Commenting on the launch, Martin Tilley, director of technical servcies at Dentons Pensions said: “7IM is a well-known and respected brand, offering a good platform available through a number of distribution channels, so it is no surprise they have taken the step to enter the SIPP market directly. It will be interesting to see how their SIPP administration element stacks up alongside their investment platform.”

The fact that the SIPP would accept only standard assets meant it was “pitching to an already crowded market” Tilley said  and the pricing structure which “recognised the discrete costs of certain transactions” meant it would need “individual comparison on a pricing basis on a client-by-client basis.”

For clients needing non-standard assets, such as investment in direct commercial property, Tilley pointed out that “the 7IM platform can be held within other SIPP providers products thus offering the widest range of investment options – a best of both worlds.”


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