Protected Rights and the Avalon Freedom SIPP

With effect from 1^st 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).

Someone who has held a protected rights policy since they began in 1988 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 for your clients.

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.

Avalons website application forms are currently being amended to allow for Protected Rights Transfers but in the interim please phone us for further information.  

We will not allow members to contract out under our SIPPs and therefore do not accept Protected Rights rebates. Any rebates that are requested by a previous scheme before the monies are transferred to us will be accepted as these will form part of the transfer value from the ceding scheme.