Advisers say SIPPs should not hold non-standard assets - research

The study, which surveyed 1,000 advisers, found just a quarter (24%) of respondents said SIPP providers should allow non-standard assets, while slightly more (27%) were undecided on the issue.  

Four-fifths (78%) of advisers favoured the introduction of a list of prohibited SIPP investments while six out of ten (59%) said recent SIPP court cases have made them more cautious about non-standard investments.

Meanwhile, it found the same number (59%) of advisers expect SIPP complaints will increase over the next year and nearly half (47%) think SIPPs are only suitable for experienced investors.

Responsibility
The research also found more than two-thirds (70%) of advisers think they should be the ones responsible for ensuring SIPP investments are suitable.

Despite the caution over non-standard investments, two-thirds (65%) of advisers said the SIPP market had been unfairly tarnished by a small number of problem cases. Just 13% said the SIPP brand has been permanently damaged, while 75% said it will survive. 

CoreData Research head of international Craig Phillips said the study showed advisers assign themselves with a "high degree of responsibility" when protecting clients from bad outcomes and ensuring SIPP investments are suitable.

This article was first published by Professional Adviser, a sister title to International Investment