A Sipp firm claims its new proposition shows it has risen to the challenge laid down by the FCA for operators in the sector to up their game.
Yorsipp’s Auto Invest option, announced this morning, is designed to set a new standard of investment governance and due diligence, the company said.
It will mean the Sipp Trustee acknowledging their duty of care to ensure all investment options made available within the Sipp are suitable for members, according to Yorsipp.
The option, created with BirthStar, will be available across the entire Sipp product range from 22 June.
The Sipp wrapper cost will be from £175+VAT per year and 0.80%p.a. TER for the managed portfolios and the TIP.

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Explaining how it will work, Yorsipp said in a statement: “By selecting the Auto Invest option, members are signposted to a range of funds labelled by a target date which is the date range they expect to retire.
“For example, a 55 year old expecting to retire in ten years’ time, could select the BirthStar 2021-25 Target Date Fund and hold on to it thereafter, pending an active choice around decumulation options.
“The funds are suitable for retirement investing. As the target retirement date approaches, the fund progressively moves from a growth portfolio towards a more cautious portfolio.
“After the target date the portfolio remains cautiously managed across a broad range of asset classes thereby offering a through-retirement multi-asset investment strategy.
“The strategy is delivered within a single fund for convenience, consistency and efficiency. Unlike fixed lifestyling techniques, the BirthStar Target Date Funds are dynamically managed to adapt to changing market, economic and legislative conditions.
“Once selected, the option will work in a similar way to a default fund approach in the workplace market - however there is no restriction at any stage on customers selecting alternative investment options.”
Mark Canning, head of business development at Yorsipp, said: “We are delighted to be working with BirthStar to create a higher standard of governance around Sipp investments.
“There has been continued call from the FCA for Sipp operators to raise their game, and we are delighted to respond to that challenge. Sipps are trust-based arrangements and as such the Sipp trustees have a clear duty of care to their memberships.
“This, and the new pensions freedoms, means that there is now, more than ever, a greater need to focus customer choices around properly governed investments that focus on outcomes.”