Can a SIPP transfer be partial?

hoc

When a SIPP is transferred from one provider to another must this necessarily result in the closure of the account being transferred out, like a current account switch?


Looking at a few SIPP transfer form examples confirms only that the transfer can be done in cash and/or in specie. There is no option to indicate whether the old account should remain open. What would happen, for example, if one of the holdings was not included on the transfer list?

SeniorSam

Your SIPP provider will be able to confirm details to you. However, you are free to have more than one provider dealing with your Pension arrangements if you wish, so it's up to you to decide if there is any benefit to you.

The end result will be how you have selected the investments, but if you are moving from one to another, then include a note to say that you wish to transfer ALL of your present SIPP holdings..

glider3560

Yes, it can be partial.

For example, the Hargreaves Lansdown transfer out form allows you to specify: full, % of value or value in £. It also lets you choose cash or in specie (attach list of investments to transfer if partial).

Albermarle

I am not sure that all providers allow partial transfer, but for sure many do .
With a partial transfer it is probably easier to transfer in cash to avoid possible confusion.
With mine I was not able to use the online transfer service as this had no facility to ask for a partial transfer . However they advised me to print off a form where I could make it clear the actual amount I wanted transferred.

SeniorSam

Do check on charges for transfer, particularly cash or in species, as sometimes there is a better way to transfer that costs less or even nothing at all.

hoc

I do see the "tick here if partial transfer" on the HL form. Others including big players like Youinvest and ii do not.


So it seems the industry practice/default is similar to current account switching, where some offer the partial switch option. With this being the default, it then seems unnecessary to ask to list out each and every asset in such detail if they'll all be brought over along with cash. This isn't clear as expected because the forms do not state/warn the old account will be closed as a result which the current account switching process makes exceedingly clear, several times.



I'm still curious to know what happens when the transfer form is incomplete, either holdings or cash not listed or not listed to full amounts. Does the transferring in (new) provider ask the customer to confirm it hasn't been forgotten? Of course, they would only know if the old provider told them. Do they just leave it untransferred with the old provider or bring it over regardless?


If it is only a partial transfer is the 'exit fee' relevant? I had thought of this as an account closing fee but I suppose not.


A total transfer resulting in the closing of the old account shouldn't be a disaster in most cases as few providers charge to open one so could in theory just open another one.


My main interest and reason for asking is there are some cases where in-specie transfer between providers, without closing, would be very beneficial in scenarios where uncapped, % based fees are involved as some providers are cheaper to hold but others are much cheaper to buy and sell (combined) while others are cheaper still on individual buy/sell. Those who deal with foreign denominated and the resulting FX fees will be familiar. So once a year transferring from my "holding" provider to my "buy/sell" provider to sell undesired and buy desired and then transfer pack in-specie would save a lot of money.

SeniorSam

Far easier and more logical to switch funds rather than try and switch providers on a regular basis. You will never get anywhere doing that. In my opinion, Funds are more reliable, particularly in finding good fund managers such as Lindsell Train, Fundsmith, Buffettology and others should give you a good returns

Albermarle

So once a year transferring from my "holding" provider to my "buy/sell" provider to sell undesired and buy desired and then transfer pack in-specie would save a lot of money.

It could also be a lot of hassle . There are no guarantees on the time a pension transfer takes . It can be anything from 48 hours to months + you might have the issue of exit fees .

hoc

Albermarle wrote: »

It could also be a lot of hassle . There are no guarantees on the time a pension transfer takes . It can be anything from 48 hours to months + you might have the issue of exit fees .

In-specie transfer is typically quoted as 2 to 3 months. So it takes time to complete, true, however the process seems simple enough otherwise, just a matter of completing a form. Is this what you mean by "hassle"? Or do you mean if it happens to go wrong and requires chasing after? I have read some stories but they almost always are related to complications due to exotic assets not megacap shares on major indices.


Transfer including all fees would cost from 100 increasing by 25 for each holding line. FX fee arbitrage is minimum 0.5%. Breakeven is on asset transfer over 20k.

clivep

Fidelity allow partial transfers. It's one of the reasons we moved our Stakeholder pensions to their SIPPs. The new pots from the partial transfers out were then closed under the small pots rules to make use of our tax allowances in the year before UFPLS withdrawals were introduced.

FaTB72

A partial transfer of my pension pot is something I will definitely be looking into early next year now that Vanguard are releasing a SIPP product. Unfortunately my company will only send pension contributions to Hargreaves Lansdown charging a 0.45% platform fee. Vanguard will charge 0.15%. Obviously I'll only be able to pick from Vanguards own funds (that's fine by me). Having the additional choice of funds on the HL platform might be nice for some, but is it really paying 3 times the amount for ?