-
These were introduced at the same time as stakeholder pensions
on 6th April 2001. Individual pension accounts (IPAs) cannot be
held by individuals as investments and are not a type of pension
scheme. IPAs are a form of investment in which all types of pension
schemes can invest.
-
The IPA is a wrapper for underlying investments. The investments
which can be included are:
- units in authorised unit trusts;
- shares or units in a fund subject to UCITS rules;
- OEICs;
- shares in an investment trust whose gearing does not
exceed 50% of the fund.
|
-
IPAs are not collective investments for the purposes of the Financial
Services and Markets Act 2000 but the underlying investments are
regulated investments under the Act.
-
IPAs are portable and can be transferred between different pension
schemes.
-
IPAs are not subject to CAT marking standards. However, if used
within a stakeholder pension the 1% stakeholder annual management
charge limit will have to take into account the charges for the
stakeholder scheme, the IPA charges and the investment product charges.
-
IPA managers are exempt from the 0.5% stamp duty reserve tax that
usually applies to funds dealing in collective investments.