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Upcoming changes to your ii SIPP

Upcoming changes to the ii SIPP

The structure of our SIPP is changing with effect from 6 April 2019

 

These changes don’t affect how you interact with us in relation to your SIPP: your online access, and all the options available to you for how you use your SIPP remain unchanged and any questions or concerns you have relating to your SIPP or your account will be answered by us.

What are the changes?

We are pleased to let you know about changes to our SIPP service which will mean that, from 6 April 2019, Interactive Investor Services Limited (ii) will become Operator and Scheme Administrator of the SIPP and be solely responsible for the SIPP service you use. There are no functional changes to how you use your SIPP but the Terms have been updated to reflect this change of responsibility.

Our partners, BW SIPP LLP (BW) will continue to carry out the day to day administration of your SIPP, including claiming basic rate tax relief on your contributions where applicable, and processing pension income payments and withdrawals. Interactive Investor Trustees Ltd (IITL) will continue to be the ii SIPP Trustee.

 

Changes to the SIPP Terms and other documents

As you may recall, your SIPP is made up of two parts: the SIPP ‘wrapper’ provided by our partners BW SIPP LLP (BW), governed by the SIPP Terms and Conditions and the SIPP Key Features and your SIPP Investment account, provided by ii and governed by the SIPP Investment Terms of Business.

ii will now be responsible for all aspects of your SIPP and these documents have been updated to reflect this change in responsibilities. For convenience the two sets of Terms have been combined into one document. We’ve also taken the opportunity to clarify some terms to more clearly explain how they apply. The Investor SIPP Trust Deed and Rules has also been amended to reflect the change of Operator

 

What do you need to do?

Please review the amended ii SIPP Terms (comprising the SIPP Operator Terms & Conditions and the SIPP Investment Terms of Service) together with a summary of the key changes: they will be effective from 6 April 2019 and will form the basis on which your SIPP continues to be provided.

 

Summary of the main changes

These are the main changes to the SIPP Terms. We recommend you read the ii SIPP Terms in full.

Clause

Description of Change

SIPP Operator Ts & Cs

Document title

Changed to ii SIPP Operator Terms & Conditions to make clear the distinction between these and the Investments Terms of Service.

General

All references to BW SIPP LLP as Operator have been changed to show that Interactive Investor Services Ltd (iiSL) is the Operator of the Scheme.

BW SIPP LLP’s new role as 'scheme practitioner' has been added to the glossary.

Glossary

References to PensionWise have been updated to refer to the new Single Financial Guidance Body.

7.1 Annual Allowance and 7.2  MPAA

To ensure these details remain up to date, the allowances for the current tax year has been removed: up to date allowances are shown in the SIPP section of the ii website.

8.1 Transfers to the ii SIPP

Clarification added to show that regulated advice is only needed for the transfer of a DB scheme of £30,000 or more.

Clarification added to show where cash funds are held (with ii or BW) during a transfer-in.

8.2 Transfers from the ii SIPP

Clarification added to show where cash funds are held (with ii or BW) during a transfer out.

9 Voting rights and notification of meetings

Clarification added to show that voting rights and notifications of meetings is covered by the SIPP Investment Terms of Service (Clause 7.2 f).

10.6 Taking benefits, PCLS

Additional content added to make it clear that when crystallising the total pension fund, PCLS must be taken in one amount in order to take the full 25%. (Further information is also available in the SIPP FAQs section of our website.

11.2 & 11.3 Tax charge on death

To ensure these details remain up to date, the current tax rate has been removed: rates are shown in the SIPP section of the ii website.

12.1 Payment of SIPP fees

Clarification added for the avoidance of doubt that the separate SIPP Investment Account charges apply, as shown in the published Rates and Charges.

14 Banking and custody arrangements

Amended to explain where cash is held by the Trustee, scheme practitioner or in the SIPP Investment account.

15 Liability

Note added to clarify that this clause relates to our liability as Operator. The separate SIPP Investment Terms of Service relate to our liability as the provider of those investment services under those terms.

18 Data Protection

This clause has been updated to mirror the standard data protection wording in the SIPP Investment Terms and Conditions of Service, as in becoming the SIPP operator [we] will become data controller under these SIPP Operator Terms and Conditions. Definitions in the glossary have also been updated to refer to current data protection legislation.

19 Changes to Terms

Updated to mirror the provisions in the SIPP Investment Terms and Conditions of Services, where applicable.

21 FSCS

Additional information has been added to show how FSCS protection continues to apply whether cash in the SIPP is held by the Trustee, scheme practitioner or in the SIPP Investment Account.

SIPP Investment Terms of Service

Preamble

Updated to show interaction with the SIPP Operator Terms and Conditions, which have been updated to reflect ii’s new status as Operator of the Scheme.

General

Clarification to show when we are acting either as Operator or as investment services provider.

4.18 (e) Dividend reinvestment

Clarification added to show that should shares be reclassified by the issuer, you may need to re-elect for dividends to be reinvested.

13 Liability

Note added to clarify that this clause relates to our liability as operator. The separate SIPP Operator Terms and Conditions relate to our liability as the Operator of the Scheme under those terms.

21.1 Communications

Updated to show that you can send communication via your account secure messaging facility.

23.2 FSCS

Additional information has been added to refer to the SIPP Operator Terms and Conditions which explain how cash in the SIPP is protected when not in the SIPP Investment account.

 

Terms and other documents

Current

Effective from 6 April 2019

SIPP Terms and Conditions

SIPP Investment Terms

ii SIPP Key Features

ii SIPP Terms*

ii SIPP Key Features

* incorporating the SIPP Operator Terms and the SIPP Investment Terms.