Revealed: the 4 simple reasons not to recommend IPM to your clients

Last month we looked at 10 reasons why you should consider IPM as your SIPP provider of choice. In most instances, thanks to our expertise and service, IPM will be able to assist you and your client when it comes to their SIPP.

However, we’re also honest enough to understand that this may not always be the case. With a choice of SIPP providers in the market, there may be times where another provider may be better placed to provide a solution for your client. Or, in some circumstances, we won’t be able to accommodate your client’s request.

In the interests of balance, here are four instances where IPM may not be the best fit for your client.

1. If you are a non-regulated introducer

We have built our client base by developing relationships with FCA regulated financial advisers. This is to ensure that all clients receive advice tailored to their specific circumstances including whether a SIPP is right for them and, if so, whether IPM is the best fit.

Over recent years there have been stories of SIPP providers receiving volume business from non-regulated introducers. This business has tended to come from either unregulated advisers or firms pushing a certain investment structure.

In some instances, this has led to serious client detriment and subsequent administrative and financial issues for the provider concerned. IPM has never developed relationships with non-regulated introducers, nor do we intend to.

2. If your client wishes to make investments in unquoted shares, tangible assets, and other esoteric assets

As a bespoke SIPP provider, we aim to accommodate the majority of our client’s requests. We do not operate panels of investment houses; instead, we allow clients to select the most suitable discretionary fund manager, platform, bond provider, stockbroker or bank that best suits their requirements, subject to our assessment process being completed.

You can find out more about investment flexibility in our downloadable guide.

IPM will also consider non-standard assets, as defined by the FCA for SIPP operators. IPM has a thorough process for assessing such investment requests and there is no guarantee that any assessment we commence will lead us to proceeding with an investment.

The kind of non-standard assets we will consider are quarterly dealing hedge funds for suitable clients, bank deposits that cannot be broken within 30 days, and some suspended funds that have are currently illiquid but make up a small part of a much larger SIPP.

IPM has never invested into anything that:

• We do not feel we can administer efficiently
• Is likely to give rise to tax charges with HMRC
• Does not satisfy the FCA’s non-standard asset criteria.

So, if you are looking for a provider that can invest in overseas property, private equity, or other tangible assets and esoteric investments, IPM will not be able to help.

3. If your client has a small fund value

Although IPM does not have a minimum amount that we will accept as a SIPP value, the typical value of a client’s SIPP with us exceeds £100,000.

Our annual administration fee is a flat £540 + VAT, regardless of the value of a client’s SIPP, and, as such, will typically attract those clients with a larger pension pot where a flat fee represents excellent value.

However, each client’s circumstances are different. For example, given our expertise and competitive charges for commercial property SIPPs, we have many clients whose SIPPs hold properties below the £100,000 amount mentioned above.

IPM only has one SIPP offering, the IPM SIPP. This is our full, bespoke SIPP with the same annual administration fee for all clients. This fee reflects the level of support and service we offer clients and their appointed intermediaries.

If a client does not require our flexibility or service levels, or if they want a SIPP that has a low annual fee then there are other SIPP providers in the market who are able to offer this.

4. If you or your client requires an online SIPP

The shift to online in all aspects of life is happening quickly and has accelerated over the last 12 months due to the coronavirus pandemic.

Innovation in the SIPP industry over the last few years has seen several online SIPP offerings come to market. These are from companies who historically have been more investment focused or from traditional SIPP operators who are offering a more diluted version of their full SIPP offering.

Online SIPPs usually come with lower fees but also lower flexibility in terms of the investment partners you can work with, the investments that can be made, or the way that benefits can be drawn. Sometimes it can also be harder to speak to someone on the phone, if needs be.

IPM’s offering has always been people based; our staff are one of our biggest strengths and we like to build relationships with the advisers that work with us. Consequently, IPM does not offer an online SIPP.

Instead, we offer an online access facility to complement the service we provide. This is split into two areas:

• Access for advisers, which shows the information IPM holds on all of your clients who have SIPPs with us
• Access for clients, which provides information about their own SIPP.

Click here to find out more about IPM’s online access facilities.

Get in touch

While we appreciate that we won’t be the perfect fit for every single client, we can help most of your clients with their SIPP needs.

If you want to have a chat about the potential of SIPPs for your clients, or any other aspects of pension planning, please contact us. Email info@ipm-pensions.co.uk or call 01438 747 151.