Review of the year 2011; challenges and triumphs

The challenge of pensions regulation change
Flexible drawdown offered on SSAS, SIPP and Family Pension Trust products from 6 April 2011
Strong growth despite market downturn speculation
Trusted products rated by the industry
More investment links and specially negotiated terms
Commercial property
Support to advisers and clients
A new SIPP
Looking forward to 2012

2011 has been a busy year for the pensions market and for Rowanmoor Pensions; here are just some of the highlights of the past 12 months.

The challenge of pensions regulation change

There were many changes to pensions regulations affecting SSAS, SIPP and Family Pension Trust (Family SIPP) throughout 2011. These changes, and the issues arising from them, led to new challenges and new opportunities for pension savers and their advisers.

The changes to pensions legislation from 6 April 2011 were highlighted in our April etalk online article. Rowanmoor Pensions held a series of seminars in May, targeted at financial advisers, where we explained how the pension legislation changes can be used to their clients’ best advantage.

2011 has been a challenging year for the pensions industry as the economic and investment market situation has affected it in many ways. In August, when the gilt yield rate for September 2011 fell below 3.5% for the first time in 15 years our Director of Actuarial Services warned the market on how the falling gilt yields bring further bad news for pensioners under capped drawdown. This trend has continued and the December gilt yield figure has fallen further to 2.5%.

As today’s pensioners face the combined effect of lower gilt yields and poor investment market returns, together with changes in Government pensions regulations, which came into effect in April, Rowanmoor Pensions reminded the market there is another option to capped drawdown that may be being overlooked.

In November, regulations designed to strengthen the protection of members of defined benefits schemes may potentially, and unintentionally, affect scheme pensions from a SSAS. This was explained in Scheme pensions for SIPPs and SSASs and the Pensions Act 2011.

A reduced lifetime allowance will be enforced from 6 April 2012. To protect clients’ pension funds from this change, Rowanmoor Pensions reminded clients and advisers about the option of applying for fixed protection as the deadline is approaching. These articles give details about fixed protection including links to the HMRC application form and notes on its completion, and explain the factors advisers and clients should consider when deciding whether to claim fixed protection.

There are other issues discussed in 2011 that may affect SSAS, SIPP and Family Pension Trust (Family SIPP) further in 2012. Ian Hammond, Managing Director of Rowanmoor Pensions has commented on the prospects for the pensions market that may bring more changes in 2012. These include the abolition of protected rights, the potential new requirements of the Pensions Act, the maximum drawdown rate for capped drawdown and the capital adequacy required for SIPP operators.

2012 will be another exciting year. Rowanmoor Pensions will publish further information on the issues that may affect clients and advisers. To find out more you can sign up for Rowanmoor Pensions etalk email to receive our updates, or visit www.rowanmoor.co.uk regularly.

Flexible drawdown offered on SSAS, SIPP and Family Pension Trust products from 6 April 2011

In line with our commitment to provide high quality, bespoke administration services, Rowanmoor Pensions offered flexible drawdown on all products from 6 April 2011. We worked hard to update our systems to meet the deadline. HMRC’s late instruction, that scheme pension only counts towards the minimum income requirement if the scheme has 20 or more people receiving a pension, which was published on 31 March, came as a disappointment.

Strong growth despite market downturn speculation

In an unstable environment of regulatory change and market fluctuations affecting the pensions industry, Rowanmoor Pensions strengthened its position in the SSAS and SIPP market.

Our strong new business results throughout 2011 are testament to the reputation that Rowanmoor Pensions has carved out for the high quality of its services. Our products have become key vehicles in our clients’ portfolios, giving them ultimate control over their retirement income and investments.

A record breaking growth of 55% in Rowanmoor Pensions SIPP new business was announced in October 2011. This is well ahead of the industry’s average growth figures, according to research revealed at the AMPS Annual General Meeting on 4 October 2011.

Despite rapid legislative change, the number of SSAS products written also rose in 2011. At the end of our fourth quarter of trading in September, they were up by more than 14%, compared to the previous year.

Trusted products rated by the industry

Rowanmoor Pensions is utterly focused on delivering excellence across its member-directed pension scheme range and confident that its products are delivered with the best possible customer service and client care.

In 2011, to give transparency to this claim, Rowanmoor Pensions became the first provider to publish its service standards and service standards results on a monthly basis for all products; SSAS, SIPP and Family Pension Trust (Family SIPP).

SSAS

Rowanmoor Pensions is the UKs largest independent SSAS provider. Its outstanding service has led to this growth and resulted in the company being awarded “Best SSAS Provider”, for the fourth year running, at the Investment Life and Pensions Moneyfacts Awards 2011.

The average monthly service standard result achieved for SSAS up to October 2011 was 99.11%.

SIPP

Rowanmoor Pensions SIPP celebrated its second anniversary in May 2011. Its comprehensive range of features and benefits were rewarded with a 5 Star Rating by Defaqto in 2011.

Rowanmoor Pensions also recorded a strong performance against its SIPP service standards with average monthly service standards results achieved up to October 2011 of 99.20%.

The strong growth of Rowanmoor Pensions SIPP is evidenced throughout the year. It is exciting to say, ‘Rowanmoor Pensions SIPP has claimed its place at the top end of the bespoke SIPP market and our approach to service standards is leading the market.’

Family Pension Trust (Family SIPP)

Rowanmoor Pensions was the first company to launch a Family SIPP. In 2011, it has again led the market being first to publish Family Pension Trust service standards and monthly results.

The average monthly service standards result achieved for Family Pension Trust up to October 2011 was 99.41%.

Commercial property

Investment in commercial property as part of a SSAS, SIPP or Family Pension Trust (Family SIPP) portfolio has become increasingly popular. The mechanics of organising the purchase itself can be a complex procedure and there can be some pitfalls.

In 2011 Rowanmoor Pensions published free commercial property guides for its SSAS, and SIPP and Family Pension Trust, which point out these dangers and help make the whole process as straightforward as possible.

The guides detail factors to consider when purchasing a property, including acceptable and prohibited property, ways to fund a property purchase and how to take control of the ongoing management of your property investment.

We will be providing clients and advisers more guidance and information on commercial property investments in 2012. You can sign up for Rowanmoor Pensions etalk email to receive our updates or visit www.rowanmoor.co.uk regularly.

Support to advisers and clients

Rowanmoor Pensions is well recognised for its expertise in the SSAS and SIPP market. To help its clients and advisers in 2011, Rowanmoor Pensions published many articles and issued client and IFA communications on topics affecting SSAS, SIPP and Family Pension Trust (Family SIPP).

Rowanmoor Pensions held a series of adviser seminars in May 2011 to explain how the pension legislation changes from April 2011 can be used to their clients’ best advantage. The seminar was reviewed as “a very thoughtful and informative presentation” and “very good seminar with useful sales ideas”.

We will continue to support advisers and clients in the new year. Sign up for our etalk email to receive our updates, or visit www.rowanmoor.co.uk regularly.

A new SIPP

Rowanmoor Pensions Brooks Macdonald Bespoke Portfolio Service (BPS) SIPP
Joining forces with wealth management specialist Brooks Macdonald, Rowanmoor Pensions brought a new bespoke SIPP into the market. The Rowanmoor Pensions Brooks Macdonald BPS SIPP provides clients with a high-quality SIPP; excellent administration and a bespoke investment service. It is designed to offer investors with SIPP portfolios in excess of £200,000 the benefits of each firm’s expertise in one efficient and cost-effective package. It offers value for money, with investments individually tailored for each client’s circumstances.

Looking forward to 2012

Thank you for supporting us in 2011. We have plans for exciting new developments to our products and services in the new year.

Ian Hammond, Managing Director of Rowanmoor Pensions has commented on the prospects for the pensions market that may bring more changes in 2012. These include the abolition of protected rights, the potential new requirements of the Pensions Act, the maximum drawdown rate for capped drawdown, the capital adequacy required for SIPP operators.

Please visit www.rowanmoor.co.uk regularly or sign up for our etalk email to receive our updates.