SIPP changes at Interactive Investor

Judwin

Hi,
Just received this from II/Lifetime. Any comments?

Dear Judwin,


The Lifetime SIPP Company Limited (Lifetime) is the current Provider of your Interactive Investor SIPP and The SIPP Trustee Company Limited is the Trustee. Interactive Investor Trading Limited (ii) is the platform provider for your SIPP investments.


Due to changes planned for Lifetime, ii have decided that a new Provider and Trustee should be appointed and that the current SIPP scheme should be wound-up in accordance with the Trust Deed & Rules. ii have selected Barnett Waddingham as its new SIPP provider and all members will be transferred to a new SIPP scheme provided and administered by BW SIPP LLP (BW).


There is no cost to you for the move to BW. Any costs will be met by ii and they will be contacting you separately with further details about the transfer.


The investments held within your SIPP will continue and will not be affected by this transfer to BW. As you will be aware from recent communications from ii, all investment accounts are due to move to the new ii platform in December. Once any documentation has been received to enable any outstanding transactions to be processed, and any balance credited to your SIPP investment account, your SIPP bank account with RBS will be closed.


You do not need to take any action in respect of the transfer of your SIPP to BW. Your SIPP will be transferred to BW as the new Provider during December 2017. Following the transfer of all accounts, the Interactive Investor SIPP provided by Lifetime will be wound-up.


If you do not wish to proceed with the planned transfer to BW, please let us know by 30 November 2017. You can transfer your SIPP to another provider or to a different scheme operated by Lifetime and investment platform. The transfer can be in cash or in specie depending on the rules of the chosen receiving scheme. ii have confirmed there will be no platform charges for this transfer, however Lifetime’s administration cost for this transfer-out is £100 + VAT and will be payable by you or your SIPP. If you choose to remain with Lifetime, your SIPP will be subject to their prevailing fees, currently £320+VAT. You should ensure the receiving scheme will accept any assets being moved across in-specie prior to requesting the transfer.


If you are unsure on how to proceed, it is recommended that you seek independent financial advice from a suitably authorised financial adviser. If you do not have an adviser you can find one via www.unbiased.co.uk .


Please note that, whichever option you select, Lifetime will continue to process any transactions outstanding as at the date of transfer and will liaise with the relevant parties accordingly.


Yours sincerely,


Caroline Knight


Relationship Manager

frugal90

I'm moving back to h&l as I am now 100% in cash and will front run defined benefit and clear out my sipping over 4 years. Will work out cheaper

Jerben

I have my long term SIPP with II, and aim to start drawing from it in 5 years.
I have a front running SIPP, in mainly cash with HL which will front run for 3 years, (starting in 2 years time). (Like Frugal90!).


We've previously been advised of the small price increase by II, but this, in my opinion, is only a minor admin change, so I will be staying at II, for the moment!
But I'll be keeping a wary eye on things, as earlier years with II were not the smoothest for admin!!

gld73

I'm going to have a play around with numbers sometime this week to see if it's still worth staying with ii; I have ISA and SIPP accounts with them and last month was told the ISA quarterly fee was going up from £20/quarter to £22.50/quarter. That was okay. The SIPP fee going up from £100 + VAT to £320 + VAT is more of a jump ..... not sure yet if it's just the % difference that makes me baulk, or if the increase really does make it worth looking elsewhere. I've never been greatly impressed by the interface format of the ii website, I was with them purely as they were cheaper than HL who I'd transferred the accounts from.

I'm also pretty miffed that the email from ii says if I'm not happy with moving to BW as their new SIPP provider, I can transfer out free of charge (which I'd expect to be offered, given the % hike in fee) .... yet Lifetime, the current SIPP provider, sent an email the same day saying ii won't charge, but they (Lifetime) will charge £100+ VAT admin fee for the transfer out!! Grrrrrrr .... :mad:

EdSwippet

gld73 wrote: »

The SIPP fee going up from £100 + VAT to £320 + VAT is more of a jump ...

Maybe I'm missing something, or there are extra details in here you haven't revealed, but I'm not sure how you get this £320.

Under old/current pricing, the account fee is £80/year and the SIPP an extra £80/year+VAT if not in drawdown, so £176. The new price will be £90/year and an extra £100/year+VAT, so £210. And if in drawdown, the new price works out to be an overall reduction, as the charge on top of all this for drawdown drops from £170+VAT to £100+VAT.

It is however a bit odd that for a company that prides itself on transparent pricing, finding out how much you would pay with them for a given case is pretty fiddly. I suppose that just goes to show once again that transparency and simplicity are not the same thing.

(It is also pretty demoralising that the government has its hand in your pockets even here by charging VAT on the cost of saving for retirement.)

newatc

What is a front running SIPP ?

EdGasketTheSecond

newatc wrote: »

What is a front running SIPP ?

A man with a yellow flag walks in front of it.

Mutton_Geoff

Interested in this thread as I am already with iii for my ISA but was considering them for my £1.25m SIPP that then will go into drawdown within the next 5 years. I like the easier presentation of the HL website, but not their % fee which works out very expensive on larger pots.


I wonder if Snowman has updated his spreadsheet yet? Will go and have a look.

pip895

Mutton_Geoff wrote: »

Interested in this thread as I am already with iii for my ISA but was considering them for my £1.25m SIPP that then will go into drawdown within the next 5 years. I like the easier presentation of the HL website, but not their % fee which works out very expensive on larger pots.

I wonder if Snowman has updated his spreadsheet yet? Will go and have a look.

Might be worth giving HL a call - they might well do a deal on prices on that sort of money. Quite a few people I know don't pay anything like the headline rate at HL. You could also look at moving over to ITs and etf's in your SIPP which are capped on HL.

gld73

EdSwippet wrote: »

Maybe I'm missing something, or there are extra details in here you haven't revealed, but I'm not sure how you get this £320.

Yes, my mistake, sorry; I mis-read who was charging the £320 + VAT .... I thought it was the new provider, not the old provider. I'm a lot less miffed now! Will probably just stay with ii and not bother with number crunching in that case

Joey_Soap

pip895 wrote: »

Might be worth giving HL a call - they might well do a deal on prices on that sort of money. Quite a few people I know don't pay anything like the headline rate at HL. You could also look at moving over to ITs and etf's in your SIPP which are capped on HL.

I tried that. Previously people had successfully negotiated with HL but I guess they got flooded with requests once it became known on web sites like this. I had four accounts (effectively eight accounts actually, ISA and SIPP count separately), ISA/SIPP for the family. As there was a fair amount of money spread across four accounts, I was paying 0.45% on every penny, every month. HL refused my request point blank to charge a "reasonable fee" across the four accounts. They also showed a very "condescending and holier than thou" attitude. So I moved every last penny away from them. I save an awful lot of money each month and was left wishing I had moved my money elsewhere much sooner.