For advisers who might be analysing Sipp products with no track record, Mr Stevens suggests that fund/share range, financial strength, brand awareness and reputation, and customer service plays almost as important a role in product selection as cost.
Service is vital, Mr Pearson adds.
“A cheaper Sipp might not be good value if the service is poor.
"Access to a good range of funds, along with clear research and guidance on what those funds are and why they might suit an investor’s needs is key to ensure the right choice of Sipp,” he says.
Be diligent
Ultimately, advisers can always carry out due diligence on the Sipp’s parent company.
Mr Lowcock says: “Find out how much has gone into developing the proposition and what functionality is available – this is especially important for advisers with clients who will have a broad range of requirements.”
He notes: “There is also the question of their commitment to the idea. Are they going to try it out and give it up after five years?
“A company’s track record in previous product developments might give an indication here.”
Mr Stevens suggests this is where more established entrants face fewer hurdles to entry.
“Vanguard, with its kudos as one of the largest fund managers in the world, has an edge here, over the likes of Wealthify,” he adds.
On merit
The general consensus is that while these newer Sipps are untested over the longer term, the latest offerings do hold merit and are worthy of consideration by advisers and their clients.
“Anything that encourages people to take control of their retirement planning is welcomed, and the entire Sipp market has developed in recent years to become more accessible for consumers,” explains Mr Pearson.
“If somebody is new to Sipp – especially if they are time poor – then a more limited offering like Wealthify or Vanguard could appeal.”
“For those who want a simple, low cost and passive Sipp and investment solution, with no risk of holding unregulated investments, then Sipps from Vanguard, Nutmeg and Wealthify certainly have merit,” says Marc Beattie, chief operating officer at Arlo Wealth.
“However, seeking out bespoke independent advice will still help investors to manage risk effectively.”
