x-o abandoning SIPP customers?

EnglishMohican

Currently, I have a SIPP held with x-o, part of Jarvis. x-o hold the shares while another company, Embark Pensions, manage the pension legal aspects.

I received a letter today from Jarvis saying that they are withdrawing from the SIPP market and that I have to move my account elsewhere. I guess they have found SIPPs not to be active enough for their liking as they make their money from trades.

This seems pretty poor to me as they advertised and sold the account in the first place. It would be less unreasonable if they simply refused to open any more and let existing SIPP accounts die out as time progressed, but to let down long term customers with substantial amounts of money in the SIPP and in ISA accounts with them seems more appropriate to shady, fly-by-night operators than a substantial financial business. To add insult to injury, they expect me to pay the costs of the transfer, including theirs. Anyway, enough ranting, before I leap into anything, I am looking for other peoples experience and wisdom.

 

Has anybody else received this letter from x-o or been in a similar position with another company? Has this happened before? I am looking for others experiences and advice on handling it.

What other companies might I consider as a replacement for x-o?   I might transfer my ISA and my wife's as well so a good company for both SIPPs and ISAs would be a bonus.

Bare in mind that there is another option, I could move from Embark as well and go to somebody who provides the full service as I think Hargreaves Lansdown do - though that would be expensive.

Hattie627

I've just moved my (quite substantial) X-O ISA holdings to a discretionary investment management company. This was part of an overall reorganisation of my investments (other ISA holdings also moved from other platforms) and nothing to do with X-O. I have moved overall from DIY investing to discretionary management (I have kept some non ISA holdings on other DIY platforms, not X-O).

I have to admit to some vague concerns about the viability/stability of the X-O platform which were discussed on here some time ago. I didn't move out then, although I did consider it (although not seriously enough to take action).

Sorry, I have no experience with SIPP holdings with X-O. I have a SIPP account with AJ Bell/You Invest which I have had no worries or problems with.

Sorry to hear of your SIPP situation with X-O. Hope you get good help from other posters here.

Hoenir

The SIPP administration is outsourced. X-O simply provide the share trading side. With the FCA generally clamping down on platforms in a variety of ways. Business models are having to change.  While disappointing this announcement made originally in an RNS on the 25th March doesn't come as a great suprise. Jarvis seemingly finding the more niche Corporate market a better fit. 

MX5huggy

Look at Monevator for SIPP providers https://monevator.com/compare-uk-cheapest-online-brokers/

not surprised they don’t want to let the book run down that could take 80 years plus. 

gt94sss2

EnglishMohican said:

To add insult to injury, they expect me to pay the costs of the transfer, including theirs. 

I'm surprised that they expect you to pay their costs as this is due to their business decision.

I would complain. When other brokers have tried to charge transfer fees after changing their T&C, regulators have not been impressed.

For a cheap SIPP, consider Trading212 as an option.

artyboy

Are they proposing a specific alternative platform to move you to? I'm not sure how else they could work this as it's not like they could just disinvest you and send a cheque with your SIPP proceeds...

wmb194

To defray the costs you could look for a Sipp transfer cashback offer either direct from the provider or via Quidco and TopCashback. Fidelity is one that's often available. Fidelity is big in Sipps and its charges aren't terrible so if you want to find a provider you'll probably never be forced to switch from again this would be an option.

k12479

gt94sss2 said:

For a cheap SIPP, consider Trading212 as an option.

I suspect the first part may have been what's led to this situation, so it might be worth considering if taking the same approach is likely to lead to similar disruption again down the line.

EnglishMohican

gt94sss2 said:

For a cheap SIPP, consider Trading212 as an option.

Just a note, I cannot find any sign that Trading212 offer a SIPP. It is not advertised on their pages and there is plenty of old discussions about when it was to be introduced and why it has not happened.

Albermarle

Best SIPP: Build a low cost DIY pension - MoneySavingExpert

Probably you will find there not any costs to transfer. In any case some of the main SIPP providers will reimburse these, and from time to time some offer cashback for transferring to them. 

EnglishMohican

artyboy said:

Are they proposing a specific alternative platform to move you to? I'm not sure how else they could work this as it's not like they could just disinvest you and send a cheque with your SIPP proceeds...

No suggestions from x-o. I suspect they are trying to pass that buck to the SIPP administrator (Embark). Embark are owned by Lloyds so whether their advice can be considered unbiased I doubt. I have not contacted them yet as I do not like going into these things blind. Thus a morning of research and trying to get up to speed with the market of 2024. 

x-o (Jarvis) have been good until now - but this certainly casts a shadow over them as a reliable supplier