Standard Life has shelved plans to charge customers £750 if they transferred out of the firm’s Sipp within 12 months of the set-up date.
The proposed charge, which would have affected new clients from January 2011, was announced last month alongside a 4 per cent hike in Sipp charges for existing customers.
In an email to clients, the company says: “After further reconsideration we have decided not to implement this charge, which would have been effective from January 2011.”
Standard Life head of Sipp Alistair Hardie says: “After actively seeking adviser feedback, we have taken immediate action and decided not to introduce this charge as we had planned from January. Instead, we will continue to monitor activity using our free consolidation service and deal with this on an individual basis.”
Hargreaves Lansdown head of pensions research Tom McPhail says: “It never made sense to penalise investors for the actions of unscrupulous brokers who were deliberately taking advantage of Standard Life’s good quality administration before then transferring funds elsewhere.”
Standard Life has also put the brakes on plans to introduce a 0.25 per cent switch charge on FundZone, the company’s fund supermarket, which was set to be implemented when a current special offer waiving it ends in December.
A spokesman says the charge has been postponed “indefinitely”.