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New SIPP options for US residents?

New SIPP options for US residents?

Old Jan 12th 2024, 5:36 pm
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Default New SIPP options for US residents?

Now that AJ Bell has decided to no longer open new SIPPs for expats, what alternatives to we have? So far, I have only found a couple:
  • MyExpatSipp
  • Hoxton Capital Management
Unfortunately, I believe these are much more expensive than AJ Bell.
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Old Jan 12th 2024, 7:38 pm
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Default Re: New SIPP options for US residents?

The only option now is to open an International SIPP. AJBell was the last UK based SIPP provider open to US residents but they closed that door a few months back.

International SIPPs are more expensive, and some are (a lot) worse than others, so choose wisely. I believe that MyExpatSIPP is one of the better ones, with lower fees and a better choice of investment than some of the others. They also allow you to manage your own investments whereas some of the others require that you go through a broker adding yet more expense and unnecessary delays when buying and selling, so look out for that.

If you are looking to transfer a defined benefit pension into a SIPP and it is valued over £30,000 then legally you need documented professional advice from a UK licensed IFA before the pension funds will be released. It is very difficult to find a licensed IFA that will work with US residents. Further, some International SIPPs will refuse to accept the funds if the professional advice is not to transfer.

Transferring a defined benefit pension into a SIPP when a US resident is challenging but not fast nor easy. Transferring defined contributions and private pensions is a much faster and less complex process.
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Old Jan 13th 2024, 12:45 am
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Default Re: New SIPP options for US residents?

Functionally, Hoxton Capital Management is reselling a product from Novia Global. Novia is UK-based. I don't think you can get a SIPP directly from Novia; their business model seems to be providing a service to financial advisers. Of course, that's two sets of mouths to feed, so more fees. Novia's selection of investments is also a bit underwhelming. If you have a defined benefit pension, Hoxton has a tame IFA to handle the formalities.
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Old Jan 13th 2024, 2:27 am
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Default Re: New SIPP options for US residents?

NOVIA Global only offer their International SIPP to US residents, a different product to that available to UK residents. The only real difference is that you get charged more for an International SIPP and the investment choices may be a little different and sometimes more restrictive. Both are regulated by the UK therefore International SIPPs are pretty safe just more expensive. NOVIA Global are one of the International SIPPs that make you go through a broker, who will charge additional annual fees to manage your investment in the form of a % applied to your total fund value. That is in addition to the NOVIA Global fees and the fund management fees. NOVIA Global are also one that will refuse the transfer if the advice on the transfer of a defined benefit plan is not to transfer. If I recall correctly the advice is almost always not to transfer, but that is wholly dependent upon the data supplied to the IFA and how you respond to the standard questions that they have to ask, so it can be skewed in favor of transferring provided you are careful in your responses.

Last edited by Glasgow Girl; Jan 13th 2024 at 2:54 am.
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