MoretoSIPPs principal John Moret has predicted that the SIPP market will grow from the current £500bn to £750 bn over the next six years.
Talking at the AMPS annual conference Moret highlighted the potential growth opportunities in the SIPP market including:
• A big technology driven opportunity in the unvested SIPP market
• Under provision in the self-employed market
• The potential impact of the pensions dashboard
• The very positive implications if the “one pot for life” model is adopted
He suggested that almost all of this growth would be achieved in the “streamlined” SIPP sector driven by investment platforms and newer Fintech SIPP providers.
Moret said he thought that regulatory overheads could cause a halving of complex SIPP providers – with only 20 likely to be active in 5 years time.
Moret also criticised the FSA and FCA for overseeing the failure of more than 15 SIPP providers affecting up to 75,000 customers with assets of up to £10bn, stating that in his view the SIPP regulatory framework is not and never has been fit for purpose.
In a poll at the event, consumer duty related issues and the lack of clarity around guidance and advice were seen as the biggest worries for SIPP providers. Commenting on the latter Moret said that all SIPP and other pension providers needed to consider very carefully the nature and level of guidance and support that they should provide.
He said “this is particularly important in the SIPP market where MoretoSIPPs recent SIPP market report had highlighted that two-thirds of SIPPs operate on a non-advised basis and less than 15% of SIPP investors had vested their benefits. That implied that nearly three million SIPP investors are faced with the complexities of retirement – with no adviser. That has to be a real concern for all SIPP providers with non-advised clients.”
