Direct lending platform Goji Investments launches ‘partial’ SIPP

Hannah Godfrey reports...

Goji Investments has launched a self-invested personal pension (SIPP) offering that will allow investors to invest exclusively in its own products.

The direct lending platform’s SIPP is to be offered via a white-label solution from SIPP and small self-administered scheme provider Morgan Lloyd.

The wrapper will be available thorugh Goji’s online platform, and advisers will be able to choose to transfer funds from their client’s existing SIPP provider or invest new funds. The SIPP is not a full SIPP, and does not represent the investment manager launching into the wider market, Goji said.

Goji head of distribution David Beacham said the launch came as a result of adviser demand and that it would only hold Goji investments, mitigating wider concerns about entering a market under scrutiny.

CEO Jake Wombwell-Povey added: “More and more advisers are recommending their clients invest in direct lending, principally through the Innovative Finance ISA, but the vast majority think the SIPP wrapper is a better home for an asset class that offers low volatility returns and income.

“We believe this SIPP innovation presents new opportunities for advisers and their clients. Goji’s straightforward SIPP helps investors achieve steady but diversified income without excessive investment charges eating into investors’ returns.”

‘SIPP market Armageddon’

The broader full-SIPP market has found itself under scrutiny in passing months as several high-profile legal cases have passed through the courts.

Last week the High Court rejected SIPP administrator Berkeley Burke’s claim against a Financial Ombudsman Service decision from 2014, and a second decision, Adams v Carey Pensions, is yet to be decided.

In the wake of the Berkeley Burke decision, the FCA wrote to SIPP providers to remind them of their regulatory commitments, and asked them to consider the potential implications of the decision.

Speaking two weeks ago at PA360 North, an all-day conference for financial advisers, Dentons Pensions director of technical services Martin Tilley warned delegates it would be ‘Armageddon‘ in the SIPP market if the judgements went against Burkeley Burke and Carey Pensions, suggesting the rulings could have knock-on consequences for the wider SIPP market.