Phillip Bray Marketing & Relationship Manager, Investment Sense

myintroducer.com catches up with Phillip Bray, Marketing and Relationship Manager at Investment Sense, the financial planning advisors.

Related topics:  In The Spotlight
Millie Dyson
4th April 2012
In The Spotlight
myi: How much has the SIPP market grown over the last few years?

I guess that depends on how you define a ‘SIPP’, many people would argue that a SIPP which only allows you to buy funds in is in fact a Personal Pension, not a SIPP; this is a view I’d probably agree with.

Having said that, even if you take a narrow view of what a SIPP is, the market has grown considerably over the past few years as investors look to take more control of their retirement, technology has been embraced by SIPP providers and the choice of SIPPs has increased.

myi: What do you expect the SIPP market to look like in 2012 and onwards?

Everyone seems to think there will be a consolidation of SIPP providers, driven by the search for economies of scale and potential changes to capital adequacy requirements. I guess this process might start to gain some real momentum from 2013 onwards; everyone seems to be concentrating on RDR at the moment.

I’d also imagine that SIPP providers are waiting for more certainty regarding anyd changes the FSA plan to make to their capital adequacy requirements before making decisions about the long term future of their business.

I’d certainly expect to see less SIPP providers in years to come; those with a customer focused and profitable model will, in my opinion, be the ones who should and will survive.

myi: What opportunities are there for SIPP investors in the current market?

I think the big opportunity for investors to take control of their retirement planning, either by being a true DIY investor or engaging with the advice process and working with a carefully chosen IFA.

SIPPs clearly give the investor an opportunity to diversify away from simply selecting funds. Although funds may continue to form the core of an investment strategy we are seeing SIPP investors consider other assets such as deposit accounts, structured products, discretionary managed portfolios as well as property.

Investors should though be careful not to use a SIPP when one is not needed, SIPPs can be higher charged than other types of pension and not all investors need the wider investment options that a SIPP provides.

Obviously the opportunity for diversification means some investors will be tempted to make investments which are frankly nothing but a quick way to lose a significant amount of their pension.  Over the past few months we’ve been offered land in far flung places, car park spaces in the Middle East and even cemetery plots in the West Midlands.

SIPP investors looking for diversification should be wary, especially of any brochure which quotes a double digit return followed by the words “guaranteed” and “SIPP approved”.

myi: What have been some of your company's key milestones over the past couple of years?

We are a relatively young IFA practice, having only been in existence just over two years. Our key milestones have certainly revolved around our website, which is rapidly turning into a much used portal for DIY investors and also those people looking for financial advice.

We are particularly proud of SIPP Zone which brings together a huge amount of information on SIPPs and also offers what we believe is the most comprehensive SIPP deposit account best buy table  on the internet.

myi: If you weren’t in the financial services what would you be doing?

I’d still be working in Marketing. I made the change from being an IFA a couple of years ago and I find the marketing world, especially online, fascinating. I love being able to conceive an idea in the morning, have it on the website later that day and be getting feedback from people who have found it useful almost immediately.

The fact it also happens to create new enquiries for our advisers helps too!
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