Members of occupational pension schemes must first deduct the value of their occupational scheme accrual of benefits for the tax year from their personal contribution headroom.
Q. Who chooses the investments ?
A. You do. We try to make sure the investments you choose for your SIPPs are allowed. However, we do not accept any tax consequences and/or liabilities of any kind should we later find that, whatever the reason, you have chosen non-qualifying or unsuitable investments.
Our dealers are pleased to provide free investment assistance (always on a general "Execution Only" basis) to enable you to make your final investment decisions. However, you are always responsible for suitability and future investment performance. Pilling Advisory Service will be happy to provide more detailed personal analysis of your investment portfolio once you return our "Client Agreement". Details are available
on request.
Q. I am a financial adviser. Can I introduce pension business to Pilling & Co ?
A. Yes. Financial advisers that are registered with the FSA who introduce pension clients to us can receive up to 3% initial and up to 0.5% annual renewal commission on contributions and resulting fund values respectively. This must be agreed by the client in the initial application. In addition, financial advisors must complete our indirect Client Supplementary Terms of Business (available separately) to register an agency with us.
With client approval, advisers can give instructions or receive information from us on behalf of their client.
Q. Where does Stakeholder fit in ?
A. The Pilling SIPP does not qualify under Stakeholder rules because it expresses its charges clearly as an annual fee, plus commissions. That does not mean that a Pilling SIPP must be more expensive than a Stakeholder plan.
With the introduction of Stakeholder Pensions, rules were changed to allow any UK resident (including children) earning less than £30,000 pa who is UK resident to contribute up to £3600 pa to a personal pension. This is a great family tax break for Inheritance Tax mitigation and setting up investments for the long-term future of minors. We offer a Kiddie SIPP for children under 18 at half the annual and set-up fees with a very large choice of funds. On reaching age 18 the plan becomes a full SIPP with a full investment choice.
Q. Can I buy and sell shares within my SIPP ?
A. Yes. You can manage your SIPP investments without restriction, and your fund may be held entirely in cash if you choose.
Q. What investments can I make in the SIPP ?
A. Most pension arrangements restrict you to the internal funds of the chosen pension provider. However, our SIPP gives you a very wide choice of direct investments such as:
-
Stocks and Shares quoted on the UK Stock Exchange and securities on the AIM but not PLUS Quoted markets.
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Similarly quoted government or corporate bonds and debt instruments.
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Stocks and Shares traded on a recognised overseas stock exchange. Dealing terms may vary depending on which market the stock trades.
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Unit Trusts, Investment Trusts and OEICS.
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Some hedge funds (subject to necessary authorisation).
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Covered warrants (subject to completion of an application form which allows us to assess the appropriateness of complex products).
Q. Do you deal "instantly" ?
A. Yes. Unlike many schemes, our expert dealers will deal for you as soon as possible. We do not deal only "once a day," or even just "on certain days of the week". If preferred, you can often hold on the telephone while we do your deals.
Q. How do you confirm my deals ?
A. A contract note is sent to you for every deal showing price, commission etc. If you do not have a contract note, or the contract you have received is incorrect please tell us without delay and at least within 2 business days. Regardless of cause, we can accept no financial liability for missing or incorrect contract notes unless this is brought to our attention within 10 business days of the original deal(s).
Q. Can I transfer from existing pension funds to Pilling's Scheme ?
A. Yes. But, under no circumstances is Pilling & Co ever responsible for advising you on the suitability of transferring existing schemes into our SIPP. This decision is your own and transfers are, without exception, accepted on this basis.
Pension provision is a complex area for most clients, and we impose certain restrictions on the transfer of existing pension arrangements to ensure the suitability of the scheme. We accept instructions for pension transfers directly from clients who are authorised under the Financial Services Act, such as solicitors, accountants, actuaries etc., but, we strongly recommend that clients who are not so authorised should first take independent financial advice.
Over a period of time, Pilling & Co has built up a good working relationship with leading firms of independent financial advisers and we can recommend them to you for specialist pension advice.
Further details are available from your usual contact at Pilling & Co, or please speak to our Investment Department on: 0161 832 6581.
Please Note: The Pilling SIPP cannot accept transfers of protected rights monies until summer 2008. The protected rights monies within the SIPP can only be invested in cash deposits.
Q. May I leave the SIPP in cash ?
A. Yes, but you should not regard this as a permanent investment arrangement, more as a temporary home for funds during periods of market uncertainty.
Q. Do you pay interest on cash?
A. Yes. Quarterly, we pay gross interest on your cash on a tiered system at rates fixed by Pilling & Co. Your cash is always held in accounts segregated from our own, and only in banks which are authorised and regulated by the FSA. We pay interest to your account after a variable administrative deduction. An example of the rates are detailed below and our current rates are always available on request.
|
£ |
rate |
|
0 - 6999 |
0.50% |
|
7000 - 14999 |
2.00% |
|
15000 - 24999 |
2.50% |
|
25000 -
49999 |
3.00% |
|
50000 and
over |
4.00% |
Interest is credited quarterly. Amounts less than £1.00 will not be credited.
For tax reclaims and to process your contributions, an account in your name will be held by Sippdeal with the Bank of Scotland. This will also enable future income drawdown facilities.
Q. How are dividends dealt with ?
A. Dividends paid by the companies in which you invest are credited to your accounts. Together with Sippdeal Trustees Limited, we will claim any income tax deducted from interest, corporate bonds, or other eligible stocks on an annual basis and credit this to your account.
Q. How do you deal with “Corporate Actions?”
A. We write to to tell you of any action effecting your investments including conversion and subscription rights, takeovers and similar offers. We process any capital reorganisations, demergers etc. You may only take up rights issues and open offers in a SIPP if you have cash in the plan, or can add new cash to your SIPP. If you do not have enough cash, then the funds must be raised inside the plan. Where investments are pooled, entitlements are allocated on a “pro rata” basis and are rounded down to the nearest whole unit. You must give your clear instructions (preferably in writing) direct to the Pilling SIPP Department by the requested date, or we can accept no responsibilty whatsoever for any resulting losses or liabilities.
Q. How are my SIPP investments registered?
A. Through CREST, where available, in our nominee “St Ann’s Square Nominees Limited”. You are always the beneficial owner of the investments. They are never part of Pilling & Co’s assets nor, indeed, the nominee company’s assets. There may be occasions when identical stocks are pooled together within Crest, or at another custodian, as one block under the title of SASNL. These cannot then be attributable to any individual client and ownership will be evidenced by an electronic bookkeeping entry at Pilling & Co instead of a physical certificate. In these circumstances you are warned, that in the unlikely event of an un-reconcilable shortfall after the failure of a custodian, clients may share in that shortfall in proportion to their original share of the assets in the pool.
Q. Are my investments secure ?
A. Yes. Pilling & Co accepts absolute responsibility for St Ann’s Square Nominees Limited. Your investments are not only protected under the Financial Services Compensation Scheme (FSCS), but, with the security of Pilling clients in mind, we also maintain additional professional financial risks insurance to cover the changing level of turnover in our business. If your investments must be held by a third party, we will use our best endeavours to make sure that only recognised and well-respected financial institutions are used. There may be further risk with non-UK based custodians because of different settlement, legal and regulatory requirements. In some cases dividend payments may be briefly held in a custodian’s overseas bank account before payment is made to Pilling & Co. However, we do not accept responsibility for such third party safe custody obligations.
Q. Do I get valuations and statements ?
A. We send you half yearly portfolio valuations and accounting statements at no extra cost.
Q. Do you produce newsletters ?
A. Yes. We send you our PEPTalk every three months. We also produce a monthly newsletter which we can also send to you via e-mail.
Q. Can I receive Company Reports and Accounts ?
A. To reduce administration costs, we suggest that these are obtained from the respective Company Registrars direct.
Q. Do I have the same rights as an ordinary shareholder ?
A. Yes. By negotiation, we can arrange for you to attend company meetings, to vote and to receive any other relevant information that is sent to share or unitholders direct.
Q. Why is a Pilling SIPP "Low Cost" ?
A. Pilling & Co is registered as Plan Manager and Advice and Deals Manager, allowing you to take advantage of the tax benefits of SIPPs on a cost-effective basis. Our competitive administration charges and dealing commissions (see “Charges”) mean you take greater benefits from your pension fund.
Q. What are the dealing charges ?
A. With a minimum of only £10, our dealing commission per bargain is 1.65% of the first £10,000 value, 0.5% on the next £90,000 and 0.4% on any excess. We must charge you Government stamp duty at 0.5% of the value when buying UK shares, preference stocks, convertibles and investment trusts and the standard industry levy of £1 applies to all bargains over £10,000. These terms may vary for overseas stocks.
Q. Is there any commission on unit and investment trust transactions ?
A. Yes. Buying and selling investment trusts is on our normal scale, as are unit trust/OEIC sales. No further commission will be charged on buying unit or OEIC fund when we are paid commission from the managers direct.
Q. Are there any charges for closing or transferring a Pilling SIPP ?
A. Cash can be transferred to another SIPP manager at no cost. You may prefer to sell the investments at our normal dealing rates to convert them into cash. Individual shareholdings can be transferred out of the SIPP to another SIPP manager at a cost of £20 plus VAT per holding. Please note there is also a fee of £75 plus VAT payable to Sippdeal when you transfer out to another manager.
Q. Although "Self-Invested" can Pilling manage my SIPP ?
A. Yes. Not every client has the confidence, or wishes to run his or her fund without help and we are happy to offer Investment Managed and Discretionary Managed facilities to both new and existing Pilling SIPP investors.
We also offer Income, Higher Income, Growth, Select Opportunities and Overseas strategy portfolio models with the
Pilling Ideal Portfolio.
Q.
What is the Investment Management Service ?
A. This is where your investment decisions are made with the help of your own stockbroker. We will discuss any ideas you have or indeed create a portfolio structure for you. You will receive full written reports on your portfolio with an economic review every six months. Our fee for the management of your portfolio is 0.5% per annum of the value on the first £250,000 and 0.25% on any balance. The fee will be charged every six months in arrears at the time of your review.
Q. What is the Discretionary Management Service ?
A. This is where tactical decisions are made by us and acted upon without the need to contact you. Some clients work abroad and are happy that their interests are being looked after when they are away. Others simply wish to rest easy in the knowledge that their assets are receiving professional attention.
Our fee for this service is 1% per annum of the portfolio value up to £250,000 and 0.5% on any excess. Again this is charged every six months in arrears. We send you contract notes, confirming all deals we have done for you. You can always see what is happening to your account and you will be sent full investment valuations and personal portfolio reviews each half year. You will have your own personal portfolio manager who can discuss all aspects of the portfolio and the strategy behind it.
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