Illiquid shares in a SIPP

Thrugelmir

lozzy1965 said:

Alexland said:

BrianHenry said:

The SIPP provider is insisting on continuing to charge around £400 per year (even though there is no activity) and on retaining 2-3 years of cash in the account to cover future charges.  So, just because those shares are currently untradeable, I am required to pay £400 per year, indefinitely.

Have your tried raising a formal complaint against the SIPP provider? After that have you asked your situation to be escalated to the scheme trustees who have a duty to act in the best interests of scheme beneficiaries?

The trouble is (according to the Ombudsman's ruling I posted above) that the SIPP provider has a duty to HMRC to prove fair value for the shares held when sold.  Tax probably trumps leaving the public stuffed!

Not probably. It does.

Alexland

lozzy1965 said:

The trouble is (according to the Ombudsman's ruling I posted above) that the SIPP provider has a duty to HMRC to prove fair value for the shares held when sold.  Tax probably trumps leaving the public stuffed!

It's stll within the SIPP provider and trustee's powers to arrange for the customer to be treated fairly and the ongoing charges to be waived while this situation is resolved.

Xbigman

Can you not transfer to a SIPP provider like HL who charge a percentage fee? 0.45% of zero is a lot less than £400.


Darren 

Officer_Dibble

Can you give them to Sharegift? It's an option I was given when doing an ISA transfer involving a currently suspended share (which they should have been able to trasfer anyway, but AJ Bell were being particularly obtuse).

I suppose the difference is the SIPP needs a value for lifetime allowance calculations, where as an ISA doesn't. Could they agree to value it at the last traded price? Can't see HMRC quibbling about that.

BrianHenry

Thank you all for your comments and advice. I've been rather busy so I've not responded earlier. The suggestions I've already tried are:

• Making a complaint/raising it with the regulator on the grounds of unreasonable cost.  The latter is pending but unlikely to help because the Rapid Resolution Team didn't.

• The provider point blank refuses to accept the latest traded price because it is zero.  The company is not entitled to know the price of a private transfer so it is usually not told - hence assumes the price is zero.

• Getting a more recent financial statement from the company is impractical as the statement would have to be official and signed off by the Board and an accountant/auditor.  

The idea of moving to a cheaper SIPP provider might be worth exploring.  My present efforts are towards a sale to an unconnected party.  I have found someone who will take them off me.  He will, I hope, buy them, get them certificated and then rip the paper certs up!  If this doesn't work, I'll try HL.
Thanks all!