The new SIPP through IVCM will be available for standard investments only and will be supported by a new look website and suite of literature, Brooklands said in a statement explaining the changes to its staff.
Brooklands is making the move to a new SIPP in response to the increased capital requirements on SIPP operators who administer non-standard investments. These are typically higher risk or speculative schemes where the entire amount invested is at risk.
The FCA raised the capital requirements on SIPP operators with these kinds of assets in September last year after finding they tended to be illiquid and difficult to value. It also found the high costs involved in transferring them to another scheme if an operator gets into trouble warranted the move.
“The sentiment within the SIPP market is that these increased costs will have to be passed onto your clients and we feel that in the long term this could call into question the suitability of the SIPP for members who wish to hold non-standard assets,” Brooklands said.
Straight switch
The launch of the new SIPP will have no effect on existing members of its SIPP, though the company is undertaking a review in to applications submitted where no money has changed hands.
The company said it had decided to partner with Heritage with whom it had a long-standing partnership on pension administration systems. It expects to launch a number of new products with Heritage, and possibly with other partners.
The charges on the new SIPP through IVCM will be priced the same as the existing Brooklands SIPP.
"Response to increased capital costs on SIPP operators"
