Advisers are confident the implementation of new Consumer Duty rules will deliver on their key aim of boosting consumer retail investment with SIPPs one of the key areas to benefit, new research* from growing SIPP provider iPensions Group shows.
Its study found nearly half (45%) of advisers believe the number of consumers taking out SIPPs will increase as a result of the launch of Consumer Duty rules from July 31st this year.
The boost to the numbers of customers will benefit retail investment products in general, the study found. Around two out of five (39%) believe the numbers of customers taking out retail investment products will increase while 61% believe pensions and retail investment products will benefit.
Just 14% questioned believe Consumer Duty will not boost the number of retail investors while 4% are unsure what the impact of the new rules will be.
Consumer Duty aims to increase consumer protection and promote fair practices in the financial services market requiring firms to act in good faith towards retail customers, avoid foreseeable harm, and enable and support customers to pursue their financial objectives.
iPensions’ research found the new rules are already having an impact on the products that advisers offer to clients. Around one in eight (12%) say they have stopped offering high risk investments as a result while 9% have withdrawn from offer defined benefit transfer advice.
iPensions Group Managing Director Craig Cheyne said:
“A key aim of the Consumer Duty regime is to increase investment in retail investment products and advisers are confident it will deliver on that.
“Pensions in general and SIPPs in particular look likely to be major beneficiaries of the new rules and advisers are also reviewing the products they will offer to customers.
“We are focused on delivering transparent service in a timely manner and our innovative technology combined with decades of experience and expertise in UK and international pensions means we can offer a secure home for advisers looking to consolidate pension funds on behalf of clients.”
iPensions Group’s growth strategy is driven by technology-enabled products and solutions as it continues to deliver innovation in the SIPP market following significant investment in technology.
It offers a full range of SIPP services through the adviser market with its range of SIPPs including the Adviser SIPP, Platform SIPP, USA SIPP, and its Irish Transfer service.
