Momentum Pensions has teamed up with Ireland-based adviser support and services provider Conexim to roll out a platform option for its existing international self-invested personal pension (Sipp) product.
Due to launch in September 2019, it will only offer investments in clean share classes and assets that meet the FCA’s standard asset criteria.
Transfers from defined benefit schemes will be accepted with no minimum value, but the total transfer value into the Sipp must be at least £40,000 ($48,942, €44,150) – which can be done by combining DB and/or defined contribution schemes.
The cost will be 0.6% per annum, inclusive of VAT where applicable, including trustee fees and platform costs.
Momentum chief executive Stewart Davies described it to International Adviser as “simple and transparent”.
Industry shift
The development follows moves by platforms Novia Global and Praemium to launch low cost international Sipps.
Momentum’s original international Sipp has been available since 2014, and the platform option has been added to “reflect the direction of travel at the moment,” Davies told IA.
“I’m not saying that advisers are fully moving away from the life platforms, but we think there is more demand for these types of products now than for the traditional life policy offering.”
He added: “It’s not that the outlook for life policies is negative, but we’ve seen more new business come in through platforms.”
Momentum Pensions’ expectation is that the platform option will attract about £100m ($122m, €110m) in the first 12 months.
