SSAS and Sipps market advisers concerned over fee hikes

Key advisers in the Sipp and SSAS market have strong concerns over providers hiking their fees, according to research. Pensions and employee benefits firm Xafinity has revealed that most of the financial advisers it surveyed have seen providers increasing their Sipp/SSAS fees.Some 62% saw a rise in set up fees, 94% a rise in annual fees, and 44% an increase in exit fees.Also, 39% of advisers surveyed believed that providers have been increasing exit fees in order to discourage transfers out.{desktop}{/desktop}{mobile}{/mobile}There were worries about Capital Adequacy too with 44% of respondents concerned about some providers' ability to meet proposed capital adequacy requirements due to the fact that they are increasing their fees.Advisers also want changes to the notice period that providers give for any changes to fee increases; just 22% consider 60 days fair, and none at all consider 30 days a fair notice period.The research was carried out amongst leading IFAs specialising in SIPP and SSAS business across the UK.Andy Bowsher, director of self invested pensions, said: "We consulted with key advisers in the SIPP and SSAS market as many were expressing concerns that some providers were hiking their fees."While regular inflationary or index-linked fee increases are generally good practice to avoid large sudden changes in fees, advisers clearly see some of the recent changes as poor practice."Comments from advisers also showed that there are a handful of providers whose fee increases are colouring the broader picture."I believe that it is key for the industry that TCF prevails."

SSAS and Sipps market advisers concerned over fee hikes

Related items