Pension administrator Liberty SIPP has announced a two-year fee freeze for its flagship ‘Option’ product in an effort to drive sales ahead of a hike in capital adequacy requirements.
The FCA is expected to announce drastic reforms to Sipp capital requirements later this year.
The proposals, which are due to be published in the second quarter of 2014, will set out how the regulator plans to increase the amount of money Sipp firms are required to hold in reserve.
Liberty Sipp managing director John Fox says the firm hopes to win new Sipp clients by freezing the annual fee at £150 until 2016.
He says: “Last year we pared down our proposition to just one simple, build-it-yourself product, the Liberty Option Sipp. Now we are freezing its annual management charge until at least April 2016.
“This pledge is part of our commitment to win new clients and capitalise on our strong financial position.
“With many larger providers struggling to adjust to the new raft of regulatory demands and highly geared on current account commissions, we believe we are one of very few Sipp providers in the market with sufficient capital adequacy.”
Last year, Liberty Sipp recorded pre-tax profits of £682,272 as turnover passed the £1.5m mark.