SIPP provider's charges more than doubled!

ealdous

This year my SIPP provider has more than doubled their charges for managing my pension. It is invested in agricultural land, owned in trust by myself and the SIPP provider, which is then rented out.

I originally chose the company as they had a reasonable annual charge for my c. £55k investment. And there weren't that many dealing with agricultural land as a commercial property investment.

I very much feel like they are taking advantage, and changing the rules to suit themselves. I've had a poor experience with them to date.

Is it possible to change to a different SIPP provider?
Can I challenge these new fees?

Thanks
Emma

bigadaj

What do the terms and conditions say when you signed up to ten scheme?

You can transfer out but they may charge an exit fee and as you state you are looking in a restricted pool for firms that will take this on.

The value looks very low, can't be more than a few acres?

dunstonh

This year my SIPP provider has more than doubled their charges for managing my pension. It is invested in agricultural land, owned in trust by myself and the SIPP provider, which is then rented out.

Prior to the unbundling of charges, a number of unconventional investments used to benefit from a cross subsidy from regulated investments. That no longer exists. So, that has had an impact on the costs of administration for those sort of things.

Plus, there is now greater scrutiny required by the SIPP provider and a higher liability that what was thought before. Plus, SIPP providers are having to increase their solvency levels. So, again, there is upwards pressure on charges.

I very much feel like they are taking advantage, and changing the rules to suit themselves. I've had a poor experience with them to date.

Of course they are changing the rules to suit themselves. That is how businesses operate. They need to be solvent and profitable and comply with ever increasing regulation and consumer protections.

Is it possible to change to a different SIPP provider?

yes

Can I challenge these new fees?

A company is free to set its charges as it so wishes. It has to give you a period of time to allow you to exit should you choose to do so. However, you have no rights to challenge unless it is on the grounds of discrimination.