Existing Clients
With effect from 1st October 2008 we are allowing transfers of Protected Rights Funds into the Avalon Freedom SIPP.
Early in 2008, the government gave the go ahead for the investment of protected rights benefits in SIPPs following a consultation on draft regulations, a move the government believes will provide more flexibility for investors.
Traditionally pension investors have had to hold protected rights - which are accrued when an individual contracts out of the state second pension - in a separate pension scheme.
Placing protected rights in a SIPP will also allow investors to simplify the management of their pension investments by keeping everything in one place.
Indeed, once the funds are transferred, SIPP holders with Avalon will be able to invest this money as they choose, putting it into OEICS, unit trusts, equities, gilts, and even commercial property (subject to HMRC permitted investments).
If you have held a protected rights policy since they began in 1988 you could well have a fund worth more than £50,000, so it is worth taking the time to ensure that this money is working as hard as it can.
Investors and IFAs are also advised to examine the penalties and costs involved with transferring their protected rights before going ahead with the transaction.
Some protected rights policies may have complicated charging structures that could make moving funds across difficult and costly.
Please contact your independent financial adviser for more information.