BestInvest New SIPP Fees

jimmeee

Just got an email saying BestInvest will be charging an extra £100 + VAT per year.



Time to transfer out?

We have recently completed a review of the costs associated with offering the Best SIPP to ensure it remains both competitive and viable. Our tiered ongoing service fee starting at 0.3% for balances up to £250,000 is highly competitive compared to other providers and it is also lower than our starting tier for ISAs and General Investment Accounts. However, the underlying costs of providing the Best SIPP are greater than for other account-types, such as ISAs and General Investment Accounts, because of the additional requirement to have a pensions trustee and administration company involved. We will therefore be introducing a quarterly administration fee of £25+VAT to cover the administrative costs associated with holding a pension while retaining our existing ongoing servicing fee.

This administration fee will be applied to each Best SIPP account held on the Online Investment Service. This fee is in addition to the existing tiered ongoing service fee of:

Up to £250,000

0.3% a year



£250,000 - £1 million

0.2% a year



Over £1 million

Free




The above change will take effect with the first collection in November 2018 and quarterly thereafter. There is no further action required on your part. This change applies to assets held in our Best SIPP only.

Please note that any current holdings or new investments in one of our ready-made portfolios will continue to benefit from no ongoing service fee, but will be charged the newly introduced £25+VAT quarterly SIPP administration fee.

Brynsam

Hardly a huge fee - and as you've stopped your post without including the tiered fee it's impossible to know how it all stacks up.

How are the actual investments performing?

jimmeee

Added the rest of it with the tiered fees.

If I compare it with YouInvest, who charge only the tiered fees, then that's a saving of over £120 annually.

Since they charge 0.25% v 0.3%.

EdSwippet

jimmeee wrote: »

... Time to transfer out?

The following comparison tools shows you what you would pay on other SIPP platforms: http://www.comparefundplatforms.com/

There can be some truly astounding differences between providers here. For example, one of my SIPPs holds only funds and OEICs. It would cost me £2,649 over ten years if held with iWeb, but £24,818 if held with Hargreaves Lansdown. That's all the same funds and assets, same level of activity, same growth assumptions over the same time period, and so on. No prizes for guessing which of these two I avoid like the plague, then.

thigger

I'm transferring out due to this - I only have a small SIPP so it effectively doubles the fees. Just going through their T&Cs at the moment - presumably they can't charge exit fees when they're the ones changing the prices?

superlative

I'm also expecting to be better off transfering out. It more than doubles my fees. I hope you are right about no exit fees thigger. I replied to the email saying please tell me your exit fees, but I'd be glad to hear what you find in the t&C's

Johnny_Doe

Disappointing from Best Invest. Another lost customer here.. Any incentive offers/ referrals on YouInvest at the moment?

benalder284

Another facing a 250 per cent increase. A commercial decision that is theirs to take but the flat fee plus percentage on assets isn't a combination I like. I have also asks them about exit fee waiver.

Elburro

Also got the email, I don't have a huge portfolio so this is really going to hit my costs.

Moving out looks expensive as well unless anyone can confirm since the terms and conditions have changed we have any additional rights? Costs are as follows:

Transfer out of an investment to another nominee (to another pension scheme in the case of a SIPP Account) - Free

Transfer out (please note “Transfer out of an investment to another nominee” fees detailed above also apply) - Cash £75, In Specie £125

Account closure - If held more than 2 years: £75, If held less than 2 years: £175

gaz77

I'm really annoyed about this.

I spent a long time last year researching my SIPP and fund providers before choosing BestInvest as the most cost effective for me.

I've under £6k so far - £120 in fees (effectively 2%) would almost wipe out my growth so far

As above, I hope they waive fees for transferring out. I hadn't expected to have to change providers after barely a year.

I know that Vanguard have been talking about offering a SIPP. Any updates recently?

Lungboy

gaz77 wrote: »

I know that Vanguard have been talking about offering a SIPP. Any updates recently?

Nothing yet, still says "by the end of 2018" on their website.