Suffolk Life Targets Dissatisfied SIPP Property Investors With New Fee Structure

Stephen Little

29 April 2014

UK-based pensions administrator has changed its self-invested personal pension property fees to help advisors move dissatisfied property investors away from other providers.

The firm said in a statement that it had halved the property acquisition fee to £725 ($1,219), normally £1450 when a panel solicitor is used.

In addition, the firm has also waived the Master SIPP establishment fee, normally £300, and cash transfer fees from £75 to £300.

The SIPP provider said that the total cost saving per property will not be less than £1,400.

Suffolk Life said it has consistently highlighted SIPP exit fees as a barrier to investors who want to change SIPP provider, and commercial property can attract the highest of these fees.

The firm said that to support advisors and their clients who want to move yet find exit fees daunting, Suffolk Life is reducing its own fees for the transfer of in specie properties as well as contributing towards legal costs.

Suffolk Life said it will trial the new fee structure until the end of June 2014.

“High exit fees are putting off advisors from recommending a change of provider, and SIPP property investors often baulk at the cost of making the change, even from a provider who’s no longer providing the service they need. Controlling overly-high exit fees is a matter for the regulator rather than us, but we can help by reducing our own costs as much as possible to lower the overall cost of a transfer,” said Greg Kingston, head of marketing and proposition for Suffolk Life.