ABOUT SIPPS
Suffolk Life will be assuming a process change from 15 March 2009 which will see protected and non-protected rights funds administered on a pooled basis. In anticipation of this we will remove additional establishment and annual administration fees for protected rights funds from 1 May 2009 provided you now elect to pool in March 2010.
We appreciate that this may be a little later than originally expected but we believe it is important that the implementation of this facility should proceed smoothly and seamlessly with minimum disruption.
Once pooling is implemented, you have the potential to benefit from:
- reduced administration costs;
- all assets being held in a single trust based scheme; and
- a single investment regime with increased flexibility for protected rights.
We firmly believe that before you proceed with any investment decisions or applications you should always first seek the help and advice of a suitably qualified and authorised financial adviser.
For further information please see our Q & As below or download our pooling factsheet. If you would like to elect to pool, please complete our Election to pool form.
Q & As
Why has Suffolk Life decided to pool funds?
In October 2007 we were one of the first providers to allow the self-investment of protected rights using our new MasterSIPP - a full year ahead of the department for work and pensions (DWP) rule relaxation. The record keeping implications for protected rights have remained unclear but it now seems unlikely that there will be any further clarification.
Consequently we will shortly be prepared to operate protected and non-protected rights on a pooled basis. Due to the relaxed requirements of the DWP on the reporting of protected rights monies and backed up by our fully integrated bespoke IT system, we will introduce the pooling of non-protected rights and protected rights as the default option from March 2010.
From the 1 May we will:
- remove the establishment and annual administration fees on protected rights plans.
when the following conditions are met:
- only if you hold both non protected rights and protected rights plans (deed poll scheme included); and
- if you elect now to commit to pooling when the pooling facility is made available.
Protected rights fees already charged prior to the introduction of pooling will not be refunded.
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What if I have a Suffolk Life SIPP (deed poll) and protected rights plan?
You will incur no additional protected rights fees once you have elected to pool. This is on the assumption that the transfer takes place on the plan anniversary or at another date as determined by Suffolk Life at our discretion, you will be given notice if this is the case.
If you wish to pool but outside of the plan anniversary, then there will be a pooling fee. We will provide further details of how this will operate as soon as possible.
However in order to pool you will need to transfer the non-protected rights plan from the deed poll scheme to our MasterSIPP to pool in this scheme. As transferring from the deed poll scheme to the pooled trust based arrangement within MasterSIPP is a scheme transfer, we would advise that you seek financial advice on this.
If no election to pool is received, each plan will attract its own establishment and annual fees, as per the relevant schedule of fees.
What if I have a Suffolk Life SIPP (deed poll) and wish to transfer in protected rights?
From 1 May 2009 until pooling occurs, providing the election to pool is received at the same time as the application for the transfer, there will be no establishment fee for the protected rights plan established under our MasterSIPP, and going forward only one annual fee will be charged covering both the protected rights and non-protected rights plans.
You will require a financial adviser to handle your application for the MasterSIPP, even if you already hold a Suffolk Life SIPP.
Once the pooling facility is available in March 2010 we will then transfer both the deed poll plan and the protected rights plan into one pooled MasterSIPP plan free of charge. This is on the assumption that the pooling takes place on the plan anniversary or at another date as determined by us at our discretion, you will be given notice if this is the case.
If you wish to pool but outside of the plan anniversary, then there will be a pooling fee. We will provide further details of how this will operate as soon as possible.
As transferring from the deed poll scheme to the pooled trust based arrangement within MasterSIPP is a scheme transfer, we would advise that you seek financial advice on this.
Will the Suffolk Life SIPP (deed poll) move to be a pooled SIPP?
No. Whilst investors' can remain in the Suffolk Life SIPP, they cannot hold protected rights funds within it.
What if I have a MasterSIPP with both protected and non-protected rights?
You can elect to pool the non protected rights and protected rights plans right now. There will be no charge for pooling if you agree that pooling takes place on the plan anniversary or at another date as determined by us at our discretion, you will be given notice if this is the case.If you wish to pool outside of the plan anniversary then there will be a pooling fee. We will provide further details of how this will operate as soon as possible.
Can funds already crystallised be pooled?
We are still reviewing the intricacies of crystallised funds, and whether these will be able to be pooled. We will provide further information regarding this at a later date.
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How will the pooling and fee change affect me if I am a new client?
From the 1 May we will:
- remove the establishment and annual fees on protected rights plans.
when the following conditions are met:
- only if you hold both non protected rights and protected rights plans; and
- if you elect now to commit to pooling when the pooling facility is made available.
A confirmation form will have to be completed alongside the MasterSIPP application, and this can be downloaded direct from our literature library. Once pooling is introduced in March 2010 unless otherwise instructed, all new plans will be established on a pooled basis.
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What fees are remaining unchanged?
From 1 May 2009 until pooling occurs, if you have elected to pool, aside from the establishment and annual administration fees listed above, all other fees will still apply as per the relevant schedule of fees. Therefore some fees, if applicable, for protected rights will remain, including but not limited to:
- Investment facility fees;
- Property facility fees;
- Investment manager establishment fee; and
- Investment transaction fees.
Will there be any further fee changes?
Yes. Once a plan is physically pooled (from 15 March 2010 onwards) fees which currently still apply to both protected and non-protected rights funds will then only apply once. These include but are not limited to:
- Investment facility fees;
- Property facility fees; and
- Investment manager establishment fee.
The pooling option has the potential to provide better value, for example:
Scenario: You have both non-protected rights and protected rights plans and wish to transfer into the Suffolk Life MasterSIPP. You choose to set up an investment manager account as you intend to purchase stocks within the SIPP. This scenario assumes that Suffolk Life does not currently have a global agreement in place with the investment manager and they are not an e-investment affiliate.
In addition to the annual fees and annual investment fees charged per plan, prior to the introduction of pooling you would have had to establish investment accounts on both plans and incur the £100 fee to do this on each. A pooled MasterSIPP ensures that the fee is applied only once, and may also reduce the amount of deals being placed saving you transaction charges on both plans therefore providing better value.
Plans can be pooled from March 2010 onwards, but fees are being removed immediately on plan anniversaries from 1 May 2009.
There will be no charge for pooling if you agree that pooling takes place on the plan anniversary or at another date as determined by Suffolk Life in our discretion and you will be given notice if this is the case.
Does my plan have to be pooled?
No, pooling is optional. However, plans that are not pooled will still incur the current additional protected rights fees. Once pooling is introduced in the autumn of this year unless otherwise instructed we will set up all new plans on a pooled basis.Back to top
Can you take an instruction to pool immediately?
You can let us know straight away if you want to change your plans to a pooled MasterSIPP by downloading an Election to pool form.Once the completed form is received by us, the protected rights fees will no longer apply from the next plan anniversary. And once we’ve moved the plan to a pooled MasterSIPP then there could potentially be other fees that also no longer apply.
There will be no charge for pooling if you agree that pooling takes place on the plan anniversary or at another date as determined by us at our discretion, you will be given notice if this is the case.
If you wish to pool outside of the plan anniversary or as we elect then there will be a pooling fee. We will provide further details of how this will operate as soon as possible.