In addition to our longstanding Commercial Property Insured SIPP and Full SIPP research on the threesixty portal we have expanded our due diligence by adding the SIPP service to the DD|hub system.
What to expect
The SIPP service will have a standard and advanced filter criteria to allow firms to document their researched choices. The research team have also reviewed the existing question set to maintain and improve the due diligence review experience. Changes reflect adviser feedback, query themes received by the research team and our review of changes to the SIPP market.
Due diligence questions added
Unlisted shares:
A periodic request we have received is which providers allow non-standard assets within their SIPP. Typically, this has been useful for advisers who work with business owners, or seasoned investors who hold non-standard investments to diversify portfolios or receive alternative income streams. There is some good differentiation in the market that offer investment choice.
Borrowing:
A common assumption is that all SIPP providers permit borrowing within their proposition, which can be critical for client’s who are purchasing a commercial property through their SIPP. Not all providers in the market allow borrowing.
Junior SIPP:
A regular request we have received is which providers allow Junior SIPPs. As Defined Benefit schemes fall into the history books and clients are required to work longer and be solely responsible for their retirements. We see this as an area where demand will only increase as children’s pensions become more common.
Number of upheld client complaints by the Financial Ombudsman Service (FOS) in the last three years:
The providers in this market historically tended to be small and specialised. Though most larger providers now offer a SIPP product, there has been provider failures in this market in recent years. Additionally with the introduction of the Consumer Duty and the requirement to avoid causing foreseeable harm we have added this question to provide a different consideration for advisers when reviewing providers in the market.
Contributions over 75:
Historically, most providers did not permit contributions for clients over the age of 75. This is mainly due to the operational difficulties of recording personal contributions that do not receive tax relief on their systems. There are now a few providers that offer this for those clients working and saving in later life.
Non UK Bank Accounts:
Research provided by threesixty typically deals with UK residents. We have received many queries from advisers who have clients who have left the UK and wish to access their pension or have a non-UK employer make contributions to a UK pension. Based on this feedback we have added questions on servicing payments and contributions through non-UK bank accounts.
DD|hub can help you with your SIPP Research and Due Diligence
Here are five common ways DD|hub can help you with your SIPP Research and Due Diligence.
- You can filter the providers on DD|hub using 23 Standard and 15 Advanced filters to the requirements of your business, saving time and resources reviewing only providers that meet your requirements.
- You can use the default SIPP questions to review and compare provider responses. Or you have the opportunity to create your own question set (using the questions answered) to tailor aspects to particular client segments or business need.
- You can score the responses provided in three different ways:
- Expectations - You can score if the response meets, exceeds or is below your expectations.
- Pass / fail - You can simply score using a pass-fail method.
- Numerically - You can set up a bespoke scoring range, for example out of 10, to meet your requirements as a business.
- Follow - Once you have completed the due diligence exercise you can follow the providers or specific questions of interest. This means you will receive a notification on the DD|hub when information has been updated by providers and you have an audit trail of important changes.
- Just Looking - You can use our just looking functionality on DD|hub to specific pieces of provider or product information. This acts like an online library and lets you get answers to questions without conducting full due diligence.
If you require any further information about our product research, or DD|hub, contact our research team.
