Security of SIPP Providers, what compensation?
Posted: December 16th, 2016, 11:39 pm
I am just taking a fairly large CETV from a final salary scheme and transferring it to either a SIPP or a Personal Pension. My original plan was to go into a SIPP as it's flexible and offers low charges, however my IFA has suggested looking at Personal Pensions on the basis that they potentially offer more protection in the event of a problem with the provider.
This is not an area I'm at all familiar with but am keen to understand fully the levels of protection / compensation offered.
One area of particular concern is that if I hold a significant element of my pension in cash, as I am tempted to do for the first few months, presumably I am then taking a risk with the liquidity of the bank used by my SIPP or pension provider? Personal Pensions seem to be fewer and further between and, from what I can see, limit your choice of investment vehicles mainly to funds which I am keen to avoid due to cost.
If anyone can offer advice or suitable links to help with research then I'd be grateful.
Thanks
This is not an area I'm at all familiar with but am keen to understand fully the levels of protection / compensation offered.
One area of particular concern is that if I hold a significant element of my pension in cash, as I am tempted to do for the first few months, presumably I am then taking a risk with the liquidity of the bank used by my SIPP or pension provider? Personal Pensions seem to be fewer and further between and, from what I can see, limit your choice of investment vehicles mainly to funds which I am keen to avoid due to cost.
If anyone can offer advice or suitable links to help with research then I'd be grateful.
Thanks