The story also failed to mention that the majority of our fees were maintained at 2008 levels. These range from set-up fees to property purchase fees and the majority of administration fees. In addition, all charges on our single investment Sipp have remained unchanged since 2007 (despite enhancements to deliver additional flexibility). Full details of all our 2009 fees were distributed to advisers in February before coming into force.
Where fee changes were applied at the beginning of 2009, there were two main reasons. First, to address the potential TCF issue where clients who had previously been subject to increases in line with national average earnings ended up paying different fees for essentially the same service. The 2009 charging structure is fairer and more transparent.
Second, we have seen a sharp increase in “non-standard” business such as GDVCs, EPUTs and private placement of listed shares. Clearly, these require more complex administration than “standard” Oeics or unit trust business and the new fees more accurately account for the extra cost of the work. To put this into perspective, most Sipp providers do not offer these options at all and the few that do often charge on a time-cost basis that is more opaque than our fixed-fee approach.
Hornbuckle Mitchell remains committed to providing an outstanding service to our clients at a price that is both highly competitive and transparent. This is reflected not only in the regular business we receive as trans-fers from other providers but also in the Defaqto five-star rating on our full Sipp and Fipp (flexible income pension plan) which includes an independent assessment of charges.
Dave WhiteManaging director Hornbuckle Mitchell