Wow, HL SIPP charges are something else!

Albermarle

It's not unheard of for financial providers to have IT meltdowns , so that can be another reason to have more than one . Again though maybe more of an issue in drawdown phase.

Malthusian

fronty wrote: »

Interesting, I didn't realise you could do that, I've kicked off a 100% transfer from SL Wrap to II on Friday, maybe once I've got it all into II I'll consider transferring 50% into another SIPP.

Just in case it's an issue: You can't do partial transfers on funds in drawdown, only on uncrystallised funds. (A hangover from the pre pension freedoms era.)

Although TBH, even if the SIPP provider goes bust, the underlying investments will be safe won't they (unless the fund manager goes bust, but even then again the investments should be ring fenced?) So is there really any need to have multiple SIPP providers?

The main risk is that the platform goes into administration a la Beaufort and SVS, locking you out of your money for around a year or more.

IT failures shouldn't really be an issue; a catastrophic IT issue would be one that took a few weeks to sort out. If you would be skint if you missed a few weeks' worth of income, you probably need to consider holding more money in your cash account. The main risk you are facing if you have hardly anything in cash is not IT failures or platform failure, but a 2008-style market crash.

If you don't like holding cash, applying for a credit card is another solution if your credit rating is good. You don't have to use it, it would just be there in case your SIPP became inaccessible or another emergency.

Albermarle

Interesting, I didn't realise you could do that, I've kicked off a 100% transfer from SL Wrap to II on Friday, maybe once I've got it all into II I'll consider transferring 50% into another SIPP.

AS you are getting cashback for transferring your pension to II , they may not be so pleased of you than transfer 50% back out again . Better to read the T's & C's about the cashback .
On another platform I use they reserve the right ask for the money back if you transfer back out again within 18 months .

fronty

From their T&C's:

11. Your ongoing entitlement to any cashback received is subject to you keeping your ii SIPP open for a minimum of 12 months from the date of completion of the last Qualifying Transfer (the "Minimum Term"). We reserve the right to reclaim, and you agree to repay, any cashback amount paid if your ii SIPP is closed or transferred prior to the expiry of the Minimum Term. Please note that the relevant ii SIPP Terms will apply to any such transfer or withdrawal and fees as shown in our Rates & Charges may apply.

grnglide

; a catastrophic IT issue would be one that took a few weeks to sort out. If

To me a "catastrophic" IT failure would be one whereby the platform "lost" a week or more of transactions and could not recover from back up. If they were unable to establish the value of each account this would be "interesting". Most customers don't actually know the detailed value of there accounts.


I don't think we have had a truly catastrophic failure, just several "near misses" a la TSB etc.