Standard Life is increasing its Sipp charges for all existing customers by 4 per cent and introducing a £750 charge for new customers who transfer their Sipp to another provider within 12 months.
As of January 1, 2011 all charges for existing customers will increase by 4 per cent and Standard Life will introduce a drawdown annual review charge of £100. This relates to a new review service that will be available at the end of March 2011. The charge will not apply if the review is requested and completed online.
Standard Life will also introduce a £640 charge for customers who want to use their own solicitor for commercial property purchases or sales. Standard says an additional hourly rate may also apply in certain circumstances.
For new customers on or after January 1, 2011 Standard Life is introducing a £750 charge for customers who fully transfer out of the active money Sipp to another provider within the first 12 months. Standard Life says the charge will not apply on life events such as divorce, terminal illness and death.
It is also introducing a £175 drawdown set-up charge for customers who are invested in full Sipp options. It will apply on the first benefit crystallisation event.
Standard Life says it will write to existing customers by October 1, 2010 to inform them of the changes.
Head of Sipp Alistair Hardie says: “Our Sipp offers a value proposition for advisers and their customers which is reflected in the charges. This is only the third time we have increased charges since our Sipp launched in 2004. To give this some context, our one-off set up charge for full Sipp options has increased by £13 and our yearly administration charge by £17, an extra £1.40 each month.
“In direct response to adviser feedback we have introduced several enhancements to our Sipp this year, which include a range of low cost funds, increased flexibility for commercial property purchase and more flexible adviser remuneration. We have a pipeline of further improvements on the way and I’m confident our Sipp remains competitive and market leading.”