is HL SIPP the best around?

mutley74

I have held an HL SIPP for a few years now. Most investments are funds/OEICS.

However, i wish to branch out and consider some holdings in investments trusts, plus allow my company/employer to make a contribution on top of my personal payments. Except dealing charges for trusts are high in my opinion with HL.

I read somewhere that there are other SIPP providers that do the same as HL but will lower fees and also rebate back fund commissions. HL currently state that due to tax reasons commissions cant be rebated in a SIPP.

is it best to stick with HL?
Should i consider opening another SIPP for a different provider for my employer contributions? (is this allowed? and can they be combined in the future?)

any suggestions advice welcome.

dunstonh

HL is quite expensive as it not only keeps the platform hidden commission but also all of the IFA trail commission. It does charge for non commission paying investments as well.

Once you start looking to hold direct non-commission paying investments, then the alternative options will start to become more attractive. However, it will largely depend on the amounts involved.

Reaper

I also have a HL SIPP and am also planning to move it as I want to make more use of Investment Trusts and ETFs/trackers which HL charge up to £200pa for in additon to the dealing fees. They also fail to rebate commissions on funds.

However I thought I woudl wait for the RDR review to take place as it is likely to cause the platforms to alter their charges and I don't want to move twice.

Because of that I have not researched the subject properly yet but Sippdeal looked ok - they charge £50pa if you have any non-commission earning funds which is an improvement, and also pay pay trial commission.

Alliance Trust are another possibility, particularly as they offer the ultra-cheap Vanguard trackers. They also charge an annual fee (I forget how much) and rebate trail commission.

Annual charges become less important and refunds on trail commission more important as your fund value grows, so check how they work out for you.

cloud_dog

Reaper wrote: »

I also have a HL SIPP and am also planning to move it as I want to make more use of Investment Trusts and ETFs/trackers which HL charge up to £200pa for in additon to the dealing fees. They also fail to rebate commissions on funds.

Just for infor......... HL have recently announced that the maximum charge will be £45pa. Although there are other changes which may affect the overall cost slightly.

Jegersmart

I use Fidelity - if you have over 100k invested with them you receive 0.15 to 0.25% off annual management charges for the funds you hold outside of a SIPP. Their charges for their SIPPS are as follows:

https://www.fidelity.co.uk/investor/products-services/sipps/fpp-charges.page?smid=geiz5o72

basically free set up, no annual charge, free switches even but subject to normal annual management charges relating to the particular funds you hold.

westy22

Bestinvest are also worth considering as they rebate some AMC in their SIPP

Reaper

cloud_dog wrote: »

Just for infor......... HL have recently announced that the maximum charge will be £45pa. Although there are other changes which may affect the overall cost slightly.

Not for a SIPP, that stays at £200. It's just the ISA that is dropping to £45.

Debbie_A_3

HL suggest that they cannot pay a loyalty bonus in their SIPP for tax reasons. Is this true?

Debbie

ffacoffipawb

Debbie_A wrote: »

HL suggest that they cannot pay a loyalty bonus in their SIPP for tax reasons. Is this true?

Debbie

It's true that HL suggest that they cannot pay a loyalty bonus in their SIPP for tax reasons.

However, at least one other SIPP provider does pay a similar bonus. Can't remember the name of that provider though.

Ark_Welder

ffacoffipawb wrote: »

However, at least one other SIPP provider does pay a similar bonus. Can't remember the name of that provider though.

ATS, a.k.a Alliance Trust Savings. Not sure whether there are others.

Be interested *cough* to hear why HL recon tax considerations are the reason that they cannot refund to a SIPP, but which allows them to refund to an ISA. Can't be contribution limits....?

dunstonh

HL suggest that they cannot pay a loyalty bonus in their SIPP for tax reasons. Is this true?

Yes and no.

If they paid you a cash bonus to you then it would be classed as an unauthorised payment. So, pensions should never have any commission or payment back to you as cash. However, there is nothing whatsoever that prevents them using commission they are rebating to offset their charges (that is effectively how unbundled platforms do it).