Defaqto enhances SIPP coverage

Edited by the Insidemoneytalk editorial team Oct 8, 2008

Defaqto has enhanced SIPP coverage within its IFA product research and recommendation tools,

through the addition of data which examines the interest rates payable on funds held within the default SIPP bank account.

Gross interest rates and gross Annual Equivalent Rates are now shown for the following cash balances held within the default SIPP bank account: ?1,000; ?5,000; ?25,000; ?50,000; ?100,000; ?250,000; ?500,000; ?1,000,000.

Matt Ward, Principal Consultant for Pensions and Wealth Management at Defaqto says: "At a time where cash is clearly forming an important component of a SIPP investor's portfolio it is vital for IFAs to appraise their strategy in this area.

If the cash component of the portfolio is to reside within the default SIPP bank account for the longer term the IFA will need to ensure that the associated rate is competitive for their client.

"If they are not content with the terms offered by the default SIPP bank account the IFA will need to appraise cash solution alternatives along with the SIPP provider's ability to provide access to these." These new research columns have been added to both the Hybrid and Pure SIPP product tables within Aequos Engage and Aequos Online in order that the details can be factored into the IFA's product research process if required.