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How safe is Bestinvest SIPP?

Retirement | SIPP Helpful? 5

Asked by Bear44, submitted 30 April 2012.

Open Quote BestInvest used to act as discount brokers for the Fidelity SIPP which used the Funds Network Platform and Standard Life acted as the SIPP Administrators. Both are well known and well regarded in the UK.

Best’s new Select SIPP apparently uses the SEI Global Wealth Platform and uses EBS plc, part of Charles Stanley as administrators. SEI appears a very opaque organisation and whereas I can find plenty of information on Fidelity and Funds Network I can find nothing apart from a website which purports to be solely for “investment professionals” for SEI. Neither of these organisations can be described as household names.

Do you have any information on these organisations and how they compare with Fidelity and Standard Life?

Best are offering what appear to be reasonably attractive terms to transfer to their SIPP and, although there are slightly better deals around, Best seem to be offering a reasonable deal if you are actively managing a SIPP based on OIECS, especially as their fund information and manager assessments seem to be accurate and up to date. However, the fact that Best are partnering with unknown names seems to be a reason to be cautious?
End Quote

Answered by Justin on 07 September 2012

Neither SEI nor EBS are as big as Fidelity or Standard Life, but they're well established organisations (44 years and 35 years respectively# - they're just not public facing businesses. I don't think you need be unduly concerned about business risk with either company. You can read details about their history here SEI EBS..

If you feel the Bestinvest SIPP suits your needs I wouldn't hesitate to use it. Yes, it's not the cheapest, but the research is usually decent so you may find this worth the extra cost #versus those SIPP providers who give bigger annual fund rebates#.

You might find it helpful reading my answer to this previous question about the risks associated with using a SIPP ignoring investment performance). Bottom line, you're covered up to £50,000 per provider #via the FSCS# if you lose money through them illegally dipping their fingers into your pension. The other main risk is an underlying bank going bust if you're holding cash within the pension, you're normally covered by the FSCS for up to £85,000 per banking institution.

Please note this answer does not constitute a recommendation or financial advice and should not be relied upon when making specific investment or other financial decisions. You should always undertake your own research into whether a product or service is appropriate for your needs and, if necessary, use a qualified professional adviser.

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