The Sipp as originally envisaged by former Chancellor Nigel Lawson is "now an endangered species", a leading expert says, as the 25th anniversary of its creation was marked.
A quarter of a century has passed since the Sipp was launched and John Moret, the inaugural chairman of the Sipp Provider Group - now called AMPs – said much had changed since the time it was initially conceived.
He told Sipps Professional: "The intervening 25 years have seen huge developments in the Sipp market with an amazing growth rate. That growth looks set to continue with the April pensions tax changes."
Mr Moret, principal of his own consultancy MoretoSipps, said: "The reality is that today most Sipps are little more than personal pensions – with a few bells and whistles. Regulatory pressure has meant that the Sipp as originally envisaged by Nigel Lawson is now an endangered species."
He said there had been a debate over which company launched the first Sipp for many years.
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He said: "It's now of little consequence. What I can say with confidence is that in 1991 there were five inaugural members of the Sipp Provider Group – the predecessor of AMPS. None of those five companies exist today – proof if needed that it's the pioneers that get scalped – and the second movers that benefit."
Francis Moore, executive chairman at Francis Moore Holdings Group, described himself as "an evangelist for the Sipp industry".
Mr Moore, who claimed to have created and launched the first Sipp product in 1990, said the Sipp had come about because consumers needed a greater say in where their money was invested.
Mr Moore said: "The market simply did not cater to people who wanted a greater level of flexibility in order to provide for their retirement.
"The result was the creation of the Sipp - a form of pension plan that enables the holder to actively choose and manage the investments held within it. "Launched in March 1990, following the 1989 Budget, today over one million people hold a form of Sipp, with £100 billion currently invested within them."
He added: "As the Sipp celebrates 25 years it is fantastic to see so many people taking control of their retirement and getting the value they deserve."