Protected Rights – Set them free with Liberty!
From 1st October last year Protected Rights were allowed the same investment freedoms as other funds, prompting an exodus from traditional Protected Rights policies to more exciting vehicles such as SIPPs.
However, whilst lots of institutions sell SIPPs, they don’t all offer the investment scope for which SIPPs are designed. Our stance on investments is that if HMRC allow it then so do we.
The differences between providers are amazing:
Who can invest Protected Rights in what?
| Personal Pension |
Insured SIPP |
Share SIPP |
Liberty SIPP |
|
|---|---|---|---|---|
| Cash, deposits and cash funds | Yes | Yes | Yes | Yes |
| Unitised with profits | Yes | Yes | No | Yes |
| Cautious Managed Funds | Yes | Yes | No | Yes |
| Adventurous Managed Funds – own company | No | Yes | No | Yes |
| Adventurous Managed Funds – other companies | No | Perhaps | No | Yes |
| Unit Trusts | No | No | Yes | Yes |
| Investment Trusts | No | No | Yes | Yes |
| OIECS (Open Ended Investment Companies) | No | No | Yes | Yes |
| UK Gilts, Bonds and Fixed Interest | No | No | Yes | Yes |
| UK quoted shares | No | No | Yes | Yes |
| UK unquoted shares | No | No | Yes | Yes |
| Overseas quoted shares | No | No | Yes | Yes |
| Commercial Property | No | Perhaps | No | Yes |
| Taxable property held through a suitable vehicle | No | No | No | Yes |
And not all companies are the same either. We have lots of other things in our favour:
We have no ties to any product provider, nor do we take a cut of the interest earned on cash deposits in trustee bank account. We only get fees for administering the pension scheme – not from anywhere else.
Clients only pay for what they use, but look at the things we don’t charge for!
- Accepting and processing pension contributions
- Investments or trades within bonds or stockbroker accounts
- Reclaiming tax on members’ contributions from HMRC
- The initial income drawdown or for 5 yearly reviews. This means that someone on full drawdown with statutory reviews doesn’t pay a penny extra
With our bank, RBS, all clients get 0.25% above base rate regardless of their balance, and RBS provide a 24 hour online banking access (read only) for clients and their advisors. However clients can move monies into other banks to take advantage of interest rate deals.
Clients have their own administrators and aren’t passed round faceless departments.
We provide technical advice on structuring investments to ensure HMRC approval.
We understand the procedures for investing in shares in unquoted companies.
Liberty are also one of few providers who will accept in-specie contributions of assets, and with cash in short supply by it might be an ideal time to look at this option.
And, just in case we haven’t emphasised it, we can accept Protected Rights funds now.
So, for anyone with Protected Rights who wants the range of investment allowed only by a true SIPP, or anyone considering income drawdown as an alternative to a restrictive Protected Rights annuity, contact Liberty now!