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Suffolk Life cuts Sipp property fees in bid to entice transfers

Suffolk Life has cut its Sipp property fees in a bid to lure customers from rival providers.

The Legal & General-owned pension company has halved its property acquisition fee – which covers all costs relating to buying a property on behalf of a Sipp investor – from £1,450 to £725.

In addition, the firm is waiving both its £300 Master Sipp establishment fee and all cash transfer in fees. Cash transfer in fees usually range from £75 to £300.

The new fee structure is being trialled until the end of June.

Suffolk Life head of marketing and proposition Greg Kingston says: “High exit fees are putting off advisers 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.”

A number of major providers have made changes to their Sipp propositions in recent months.

In January, Standard Life removed a facility that allows Sipp investors to borrow up to 50 per cent of their fund to buy commercial property in response to “challenging” market conditions.

In February, Friends Life hiked Sipp fees 21 per cent for 2,000 policyholders in response to rising regulatory costs.

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