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  • FIRST POST
    • jimmeee
    • By jimmeee 8th Oct 18, 2:52 PM
    • 434Posts
    • 215Thanks
    jimmeee
    BestInvest New SIPP Fees
    • #1
    • 8th Oct 18, 2:52 PM
    BestInvest New SIPP Fees 8th Oct 18 at 2:52 PM
    Just got an email saying BestInvest will be charging an extra £100 + VAT per year.



    Time to transfer out?

    We have recently completed a review of the costs associated with offering the Best SIPP to ensure it remains both competitive and viable. Our tiered ongoing service fee starting at 0.3% for balances up to £250,000 is highly competitive compared to other providers and it is also lower than our starting tier for ISAs and General Investment Accounts. However, the underlying costs of providing the Best SIPP are greater than for other account-types, such as ISAs and General Investment Accounts, because of the additional requirement to have a pensions trustee and administration company involved. We will therefore be introducing a quarterly administration fee of £25+VAT to cover the administrative costs associated with holding a pension while retaining our existing ongoing servicing fee.

    This administration fee will be applied to each Best SIPP account held on the Online Investment Service. This fee is in addition to the existing tiered ongoing service fee of:

    Up to £250,000

    0.3% a year



    £250,000 - £1 million

    0.2% a year



    Over £1 million

    Free




    The above change will take effect with the first collection in November 2018 and quarterly thereafter. There is no further action required on your part. This change applies to assets held in our Best SIPP only.

    Please note that any current holdings or new investments in one of our ready-made portfolios will continue to benefit from no ongoing service fee, but will be charged the newly introduced £25+VAT quarterly SIPP administration fee.

    Last edited by jimmeee; 08-10-2018 at 3:41 PM.
Page 2
    • gaz77
    • By gaz77 9th Oct 18, 10:36 PM
    • 47 Posts
    • 7 Thanks
    gaz77
    Good news everybody!

    Just received this from the client relations people:

    I can confirm any clients wishing to transfer their SIPPís away from Bestinvest due to the new SIPP fees will have transfer charges waived.

    Good guys BestInvest I guess - might dodge Youinvest as a replacement after reading the above-linked threads.

    Edit: Anyone have much to say regarding Close Brothers vs Cavendish Online?
    Originally posted by thigger
    I haven't had a response to my email yet, but at least that sounds promising.

    I had a look at Close Brothers: https://www.closebrothersam.com/individual/what-we-do/self-directed#self-invested-personal-pension

    I've not looked at it in detail, but it seems to suggest 0 fees - surely that can't be right? Am I missing something?
    • Alexland
    • By Alexland 9th Oct 18, 10:44 PM
    • 3,365 Posts
    • 2,697 Thanks
    Alexland
    I had a look at Close Brothers: https://www.closebrothersam.com/individual/what-we-do/self-directed#self-invested-personal-pension

    I've not looked at it in detail, but it seems to suggest 0 fees - surely that can't be right? Am I missing something?
    Originally posted by gaz77
    Yes you haven't read the Pricing section below on the same page which explains the 0.25% platform fee, etc
    • jimmeee
    • By jimmeee 10th Oct 18, 12:09 PM
    • 434 Posts
    • 215 Thanks
    jimmeee
    Response received.

    They are waiving transfer out fees as well as account closure fees for anyone transferring out due to the introduction of this administration fee.
    • Maelwys
    • By Maelwys 10th Oct 18, 12:46 PM
    • 143 Posts
    • 94 Thanks
    Maelwys
    Am in the same boat as the rest, and have recieved the below response this morning:

    From: Best [mailto:Best@Tilney.co.uk]
    Sent: 10 October 2018 10:08
    To: 'Maelwys'
    Subject: SIPP Fee

    Dear Mr. Maelwys,

    Thank you for your email.

    Clients wishing to transfer their SIPP’s away from the Bestinvest platform will have the transfer fee waived due to the increase in charges.

    Kind Regards

    Sophie Toohey
    Client Relations Executive
    As yet they haven't addressed the account closure fee, which I also asked about, but at least this is something.

    For my transfer targets, I'm currently trying to decide between Close Bros and AJBell's "Youinvest". Close Bros would obviously be cheaper for me, but AJBell's pricing model seems to be a bit more robust for small-scale SIPPs so they ought to have less need to introduce any similar account maintenance fees in the near future...
    Last edited by Maelwys; 10-10-2018 at 12:55 PM.
    • jimmeee
    • By jimmeee 10th Oct 18, 1:52 PM
    • 434 Posts
    • 215 Thanks
    jimmeee
    Am in the same boat as the rest, and have recieved the below response this morning:



    As yet they haven't addressed the account closure fee, which I also asked about, but at least this is something.

    For my transfer targets, I'm currently trying to decide between Close Bros and AJBell's "Youinvest". Close Bros would obviously be cheaper for me, but AJBell's pricing model seems to be a bit more robust for small-scale SIPPs so they ought to have less need to introduce any similar account maintenance fees in the near future...
    Originally posted by Maelwys
    My email explicitly said transfer out and closure fees. So I assume that would apply to everyone.

    Close Brothers vs iWeb for me. I think I'm going to go with Close Brothers. Their fee schedule currently shows that are no fees with closing their account and transferring out from them either.
    • mxo
    • By mxo 10th Oct 18, 4:27 PM
    • 12 Posts
    • 1 Thanks
    mxo
    How long does a SIPP transfer take? They will take the first £25 payment in November. Itís pretty cheeky of them to give such short notice. I used to be a big fan of BestInvest but Iím not impressed by this, theyíve lost a customer.
    • PParka
    • By PParka 10th Oct 18, 6:33 PM
    • 196 Posts
    • 70 Thanks
    PParka
    This is really disappointing, so it looks like I'll be transferring too. At least they are waiving the transfer and account closure fees.

    If anyone else is transferring, watch out for fees to transfer in to another SIPP provider. iWeb will charge £60 to make a transfer in.

    The kids have JISAs with BestInvest. I might transfer those to a cheaper platform as well.

    PParka
    • cloud_dog
    • By cloud_dog 10th Oct 18, 6:50 PM
    • 3,878 Posts
    • 2,313 Thanks
    cloud_dog
    Both YouInvest and Fidelity are offering cashback for SIPP transfers (value depending on the size).

    Just a comment on YouInvest... Whilst I believe YouInvest are a good SIPP provider with a pretty good website and functionality I chose to avoid them simply because of their previous history when implementing new charging structures.
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Alexland
    • By Alexland 10th Oct 18, 7:11 PM
    • 3,365 Posts
    • 2,697 Thanks
    Alexland
    Both YouInvest and Fidelity are offering cashback for SIPP transfers (value depending on the size).
    Originally posted by cloud_dog
    This can be very attractive if transferring large pensions and benefiting from their capped platform fees when investing in IT/ETFs. For example the £1,000 of YouInvest cashback on a £200k pension transfer could pay the £100 capped platform fee for 10 years (or longer when you consider the cashback is paid into your bank and you can contribute it into the SIPP to get tax relief).

    Alex
    • Maelwys
    • By Maelwys 10th Oct 18, 7:35 PM
    • 143 Posts
    • 94 Thanks
    Maelwys
    How long does a SIPP transfer take? They will take the first £25 payment in November. It’s pretty cheeky of them to give such short notice. I used to be a big fan of BestInvest but I’m not impressed by this, they’ve lost a customer.
    Originally posted by mxo
    AJBell's site says:

    "As a guide, cash only should take 2 weeks, equities 4-6 weeks, funds 6-8 weeks and foreign holdings 10-12 weeks."

    Very little of my BestInvest SIPP is cash - most of it's tied up in Funds and ETFs, so it might make more sense for me to sell them and THEN transfer the SIPP, and purchase them again afterwards (or take the opportunity to do a proper rebalance)...
    • gaz77
    • By gaz77 10th Oct 18, 11:10 PM
    • 47 Posts
    • 7 Thanks
    gaz77
    I got an email back this afternoon:
    Firstly I understand your frustrations with the administration costs of the pensions now being directed to yourself to pay. Previously Bestinvest has always paid this fee on behalf of our clients however after the business conducted a review of all fees it was a decision made to pass this fee on to the client.

    What does this mean going forward?

    As of 25th November 2018 a quarterly payment of £25.00 + VAT will be applied to your account. This is the ongoing administration fee of the pension applied by EBS our custodians. Please note this has no relation to your investments in which we are very competitive with a Tiered service fee of 0.30%.

    What will happen if I decide to opt out and seek another provider?

    We understand this is a change to the terms & conditions you signed up for and we are willing to waive any transfer and exit fees based if you decide to change provider.

    Once again I wish to offer my sincere apologies for the inconvenience this has caused. If you do wish to discuss in more detail please donít hesitate to contact a member of the team on 020 7189 9999 or email best@bestinvest.co.uk

    Kindest Regards
    So at least there won't be transfer/exit fees.

    Who exactly are EBS? Do they supply custodian services to other SIPP platforms? If so, it might be worth waiting a few weeks to see if others put their fees up too
    • Cottage Economy
    • By Cottage Economy 11th Oct 18, 9:07 AM
    • 979 Posts
    • 4,069 Thanks
    Cottage Economy
    I got an email back this afternoon:


    So at least there won't be transfer/exit fees.

    Who exactly are EBS? Do they supply custodian services to other SIPP platforms? If so, it might be worth waiting a few weeks to see if others put their fees up too
    Originally posted by gaz77
    That's exactly what I was thinking. I'm going to leave everything where it is for now and look again in January to see what is happening with other platforms.

    No point jumping out of the frying pan into the fire.
    'Save £12k in 2018' £4500/£6,000 (75%)


    "...success in personal finance isn't about mastering the technicalities. It is about mastering yourself."
    • thigger
    • By thigger 11th Oct 18, 2:23 PM
    • 24 Posts
    • 6 Thanks
    thigger
    It turns out Close and Cavendish don't do SIPPs for under-18s - does anyone have any recommmendations before I end up with Youinvest (and the inherent risks!)?
    • areader
    • By areader 12th Oct 18, 10:07 AM
    • 13 Posts
    • 2 Thanks
    areader
    It turns out Close and Cavendish don't do SIPPs for under-18s - does anyone have any recommmendations before I end up with Youinvest (and the inherent risks!)?
    Originally posted by thigger

    I've only got a child SIPP with BestInvest and have not received email or other notification of any fee increase yet. Just gave them a call to check the situation and they said these fee changes would not effect child SIPPs.


    This corresponds to what is shown in Table 5 of their fee schedule
    https://www.bestinvest.co.uk/media/1602/keyfacts-non-advised.pdf
    Annual child SIPP administration fee is £0
    Last edited by areader; 12-10-2018 at 10:14 AM. Reason: added link to keyfacts
    • thigger
    • By thigger 12th Oct 18, 7:28 PM
    • 24 Posts
    • 6 Thanks
    thigger
    I've only got a child SIPP with BestInvest and have not received email or other notification of any fee increase yet. Just gave them a call to check the situation and they said these fee changes would not effect child SIPPs.
    Originally posted by areader
    I wondered why I only received one email! Thanks - saved me unnecessarily moving both. I wonder why the two CS people I had emails from didn't mention it!
    • capehorn
    • By capehorn 14th Oct 18, 7:38 PM
    • 950 Posts
    • 344 Thanks
    capehorn
    I got an email back this afternoon:


    So at least there won't be transfer/exit fees.

    Who exactly are EBS? Do they supply custodian services to other SIPP platforms? If so, it might be worth waiting a few weeks to see if others put their fees up too
    Originally posted by gaz77

    I'm in the same boat as many on this thread and was about to move away from Bestinvest. But as Dunston says on another thread, prices might be about to go up across the board amongst SIPP providers, so I'm really not sure what to do atm.
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