London, 14 August 2008: To help advisers prepare for the demand to transfer protected rights, Fidelity FundsNetwork™ is set to provide early business illustrations for clients wanting to transfer protected rights, as well as accept applications for SIPPs with protected rights from the middle of September.
Investors who take advantage of the ability to transfer their protected rights across to their SIPP, will enjoy a range of benefits:
• Access to a wide range of investment options;
• Access to the full range of self investment options within a SIPP;
• Consolidating plans can enable a more coherent approach to investment allocation as well as reduced charges and easier administration i.e. savings in time and money
• For customers using (or considering) drawdown, transferring protected rights has the potential to boost drawdown funds and make the income easier to manage.
David Dalton-Brown, Head of Fidelity FundsNetwork said: “The new regulation couldn’t have come into force soon enough. Investors will no longer have to suffer the frustration of having to split out non-protected rights funds or avoid transfers with any elements of protected rights.
“For advisers, there is the prospect of up to £100bn* of pension money up for grabs, as many investors take the opportunity to review their old plans. This could lead to a significant flow of funds from older style plans into more modern vehicles such as SIPPs.”
Protected rights are the funds built up by being ‘contracted out’ of the State Second Pension (S2P). Protected rights funds used to be subject to various restrictions which
have been gradually removed since A-Day. One of the remaining obstacles - holding protected rights within a SIPP – will be removed on the 1st October 2008.
For more information contact FundsNetwork on: 0800 99 55 11 or visit: www.fundsnetwork.co.uk
FIL Limited (“FIL”) and its subsidiary companies serve the major markets of the world by providing investment products and services to individuals and institutional investors outside the US. FIL Limited manages a total of £129.5 billion of assets***.
Notes to editors:
* Source: Fidelity/Morningstar UK Retail Prices Index (RPI) April 1999 to 3 March 2008
**Source: Fidelity as at 31.12.07
FundsNetwork, Fidelity’s fund platform, was launched in June 2000. It offers advisers and their clients the ability to invest, manage and monitor their investments in one place, bringing them control, efficiency and new business opportunities. The FundsNetwork service is offered and managed by Financial Administration Services Limited. FundsNetworkTM is a trademark of FIL Limited. The Fidelity ISA is offered and managed by Financial Administration Services Limited. The value of tax savings and eligibility to invest in an ISA will depend on individual circumstances and all tax rules may change in the future. Any opinions expressed are made at the time of writing and can be subject to change without notification. The value of investments and the income from them can go down as well as up and an investor may not get back the original amount invested. Investors should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity. Assets as at 31.12.07 are those of FIL Limited (FIL).
