SIPP Investments – Being ‘SIPP Compliant’ Does Not Make an Investment Safe or Regulated

By: John Adam
John Adam
John Adam was one of the Invezz Founding Partners & Lead Editor's up until 2017. John has an unmatched… read more.
on Sep 12, 2012
Updated: Oct 24, 2019

With Self Invested Pension Plans (SIPPS) on the rise as a means for investors to save for their retirement the term is regularly in the media. And in the world of investment and savings, acronyms, especially familiar ones, have the habit of lending weight to the trust the general public invests in propositions. Aware of this psychological effect, marketers of investment products, especially some of the more exotic alternative investment products have seized upon it and commonly use terms such as ‘SIPP Investments’ and ‘SIPP Compliant’ amongst the key sales point.

Now, this is in itself certainly not a bad thing. Being SIPP compliant is often a must for investors. Not being able to take advantage of the tax benefits placing an investment in SIPP brings would significantly reduce the potential return that the investment brings. And having been cleared by a SIPP provider(s) does mean that the investment product and provider will have undergone some form of due diligence.

However, investors should certainly not consider the ‘SIPP Investments’ tag as having any baring on the potential success of the investment product or the ability of the provider to offer the high quality management required to provide a return for investors.
Whether an investment product is SIPP compliant or not should in no way influence the potential investor when assessing the product and the provider and not be considered as lending authority or weight to either during the decision making process.

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