IWeb split from A J Bell, what to do?

JustMyThoughts

I've had 2 transfers into ajbell. Both gone wrong. Cost me thousands.  No accountability taken and with financial Ombudsman to sort out.  Think ill consolidate with another in ii. 

Albermarle

kempiejon said:

_pete_ said:
I understand that.  My concern is that their administration is clearly woeful.  As I am in the drawdown phase I want a provider that can handle routine administration competently.

I was in the market for SIPP a few years back and ruled out iWeb because of their costs for drawdown. Is it right that they charge you for accessing you money? Have a look at AJB drawdown is free, If I recall iWeb took a fee for each withdrawl and a fee for holding an account in drawdonw too. 

As the basic I web fee structure is ultra cheap/ free, then they have to charge for other things on top.

Albermarle

_pete_ said:

Hoenir said:

This is only the "payroll" administration has nothing to do with the investments.  Just as many company's do outsourcing this particular function shouldn't be an issue. Ultimately the entire market is likely to served by a handfull of operators. As it's a numbers game to make the operation economic to run. 

I understand that.  My concern is that their administration is clearly woeful.  As I am in the drawdown phase I want a provider that can handle routine administration competently.

Internet reviews are not really a good way to judge financial services companies as people only tend to review when they have problems.
Also many people don’t know what they are doing in this area, so blame the provider when it is often their own fault.
Having said that Lloyds/ SW have never been one of the better providers.
In general I would be reluctant to have a third party running my Sipp, as you could well get sent from pillar to post if there was an issue.

macgyver

I have a sipp with I Web and have also received the email. After a bit of reading, I think I am going to transfer to II as I have a largish sipp and fixed annual charge and free regular investment suits me. Has anyone done this transfer yet? Was just wondering how long would it take for in-specie. Thanks

green_man

I have my SIPP with Halifax currently and managed by AJBell, I have exactly the same decision to make.  

I have decided to keep my SIPP WITH Halifax  to be managed by Embark, this way I can keep my existing apps etc to monitor.   In the short term this looks like a great deal as we get completely free admin and drawdown until the end of 2028.

 Of course that depends Embark doing a competent admin job. In my case there’s not much to do.  I rarely do purchases or sales. I do one UFPLS a year and that’s it.

macgyver

green_man said:

I have my SIPP with Halifax currently and managed by AJBell, I have exactly the same decision to make.  

I have decided to keep my SIPP WITH Halifax  to be managed by Embark, this way I can keep my existing apps etc to monitor.   In the short term this looks like a great deal as we get completely free admin and drawdown until the end of 2028.

 Of course that depends Embark doing a competent admin job. In my case there’s not much to do.  I rarely do purchases or sales. I do one UFPLS a year and that’s it.

Thanks. That makes sense. We can always move later. I think, I will stop my transfer to interactive invester.

rohit1000

Summary (Based on my circumstances not in drawdown): Charges are all that matters as frankly the service of most execution only providers is never going to improve past getting a better self service on line system.

Situation: Iweb is forcing a move to Embark from AJ Bell or "other provider". Charges of iweb and Embark are similar (you pay similar flat fees for dealing and custody not connected to size of pension) 

So its just about whether Embark fulfill their FCA regulated duty otherwise charges roughly the same. Anyone disagree?

iweb charges 

For SIPPs valued under £50,000: £22.50 per quarter (£90 annually).
For SIPPs valued at £50,000 or more: £45.00 per quarter (£180 annually)
Charge: 2% of the dividend value, capped at £5 per stock per reinvestment.
Charge: 2% of the dividend value, capped at £5 per stock per reinvestment

Embark charges (Options sipp for funds shared ex commercial property)

Standard Fee: £200 per year (payable quarterly in arrears, £50 per quarter)Additional Investment Fee: £50 per year per additional standard investment beyond the first (e.g., a second DFM or platform account).

IWeb SIPP Costs

Administered by AJ Bell, dealing via IWeb Share Dealing.

Annual Administration Fees

• Quarterly Fee: For a £200,000 SIPP, the fee is £45 per quarter.
  • Total: £45 × 4 = £180 per year (inclusive of VAT).

Dealing Charges

• Four Trades: £5 per trade for UK investment trusts or equities.
  • Total: £5 × 4 = £20 per year.
• Additional Costs:
  • Stamp Duty Reserve Tax (SDRT) of 0.5% applies when buying UK equities or trusts (not AIM stocks). Assuming each trade is £5,000 (splitting £20,000 of the £200,000 across four trades):
    • SDRT: £5,000 × 0.5% × 4 = £100.
  • Total dealing-related costs: £20 + £100 = £120 per year.

Other Fees

• Setup: £0.
• Transfer Out: £0 (if applicable later).
• Cash Interest: Minimal interest on uninvested cash (e.g., ~4% based on Bank of England Base Rate minus a margin), but not a cost.

Total Annual Cost (Year 1 and Ongoing)

• Admin: £180.
• Dealing + SDRT: £120.
• Total: £300 per year.

---

Embark Option SIPP Costs

Administered by Embark Pensions.

Setup Fees (Year 1 Only)

Annual Administration Fees

• Base Fee: £200 + VAT = £200 × 1.2 = £240 per year.
• Additional Investment Fee: £50 + VAT per additional standard investment beyond the first. Assuming one platform (e.g., a Third Party Investment Account, TPIA) for trading: £50 × 1.2 = £60 per year.
• Total Admin: £240 + £60 = £300 per year.

Dealing Charges

• Via TPIA:
  • Setup: £0.
  • Annual Fee: Included in the £60 above.
  • Trading: Embark doesn’t charge dealing fees directly; costs depend on the chosen stockbroker. Assuming a typical execution-only broker (e.g., similar to IWeb’s £5/trade):
    • Four trades: £5 × 4 = £20 per year.

JCJC777

Has anyone looked at drawdown costs, of these options and others e.g. ii? Thanks

p.s. I'm a bit wary of Aberdeen as owners of ii. Unsure of strategic direction and focus.

LHW99

II doesn't charge for UFPLS (or it didn't last June).

bjorn_toby_wilde

JCJC777 said:

p.s. I'm a bit wary of Aberdeen as owners of ii. Unsure of strategic direction and focus.

Confused by that bit of your post. Why do you think their strategic direction or focus would make any difference to your SIPP?