A Self Invested Personal Pension (SIPP) is a Registered Pension Scheme for the purposes of Section 150 of the Finance Act 2004, and is a product regulated by the Financial Services Authority.
The major difference between a SIPP and traditional pension plans is that you have a far greater degree of control and flexibility as to the type of investments you can make within your pension plan.
For example allowable investments include:
UK and overseas stocks and shares
Unlisted shares
Commercial property
Real Estate Investment Trusts
Unit Trusts
Investment Trusts
Open Ended Investment Companies (OEICs)
Hedge Funds
Insurance company funds
Gilts and overseas securities
Deposit accounts
Cash
Montpelier Pension Administration Services take the view that any investment that is allowable by HMRC is allowable by them. This is not an attitude shared by all SIPP providers.