New cash warning letter for Elevate PIA and Wrap SIPP customers

We wish to inform you of the introduction of a new cash warning letter. From August 2024, the letters will be issued to some customers with either an Elevate PIA or Wrap SIPP product and will highlight the effect of inflation on their pension savings.

These have been introduced to support good outcomes and meet the requirement from this regulatory update  - “Improving outcomes in non-workplace pensions” (PS 22/15).

Cash warning letters will be generated when the following conditions are met:

• More than 25% of the Wrap SIPP / Elevate PIA accumulation pot is invested in cash or cash-like investments.

• The amount of cash in Wrap SIPP / Elevate PIA accumulation pot is more than £1,000.

• The above conditions have applied across three consecutive quarterly assessments.  

• A cash warning letter has not been issued in the last 12 months.

• Cash held in model portfolio or managed by a discretionary fund manager are excluded from the cash calculation.