Sipp "non standard asset" fee, is this fair?

user0923019

Hi

So I had a SIPP invested in a 2 year 2% fixed savings account with a bank via sipp administrator, opened 2015, matured 2017.

Upon checking my statement, the SIPP administrator has charged a £600 fee in 2016 for a "non standard asset fee". They introduced this fee is in 2016. I believe a non standard asset is an asset that can't be sold/released in 30 days. The savings account was a non standard asset.

Can they really charge a £600 fee out of the blue like this on existing assets? I had no option but to pay it because I couldn't get out of the savings account.

Do you think I should ask the ombudsman? If there's a good chance of getting the £600 refunded then would do. I have already ask the SIPP company if they would consider refunded it but they have declined.
Any opinions welcome.

dunstonh

The charge itself seems fair as SIPPs are now required to carry out basic levels of due diligence. So, when using unconventional investment options, there will be a cost to them which is only fair that you pay rather than other investors.

If the fee was introduced after the investment was in place, then I would question it. If it was introduced before you put the investment in place, then there is little to question. I would expect the FOS to apply that style of thinking.

user0923019

Thanks dunstonh, it was introduced after the investment was in place so will ask ombudsman for an unbiased opinion and hopefully they might ask the sipp administrator to refund it

bigadaj

user0923019 wrote: »

Thanks dunstonh, it was introduced after the investment was in place so will ask ombudsman for an unbiased opinion and hopefully they might ask the sipp administrator to refund it

The normal process is to make a formal complaint to your sipp provider and then, assuming they refuse to remove it, take it to the ombundsman or regulator.