Best SIPP provider

12th Apr '19 by Rusty2

3 comments 1261 reads

I'm considering moving my personal pension into a SIPP for lower charges and more control. It will be mostly a shared based pension but may have some funds, mostly UK but may have some US shares. Looking at Interactive Investor, fees seem to be low, does anyone know which banks II hold funds in? I currently have an ISA/Share account with HL but don't want to put any more funds with them.

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Rusty2

Premium Member

3 comments

OldSchool05

12th Apr '19

I have recently signed up with AJ Bell in a SIPP. Their management charges seem very reasonable, their website is really good and I believe they will reimburse you to a certain extent for charges you may incur on moving your funds away from the other provider.

Rusty2

12th Apr '19

Hi OldSchool05,

Thanks,I'm looking at AJ Bell as well, their fees seem a bit higher than II except for the forex fee.

jonesj

12th Apr '19

I have an AJ Bell Sipp. This is OK, although they have demerits for increasing my annual charge from zero to £100 (cap). It could be £300 capped, if I had the wrong mix of stocks and open ended funds. This reduces trust slightly.

I have an ii ISA. They have increased annual fees from £0 to £120 (approx), although most of my £120 is rebated against trade fees, so I expect to only pay ~£30.

If you intend to buy overseas stocks AND trade regularly, then forex maybe a much bigger cost to you.

ii SIPP client money custody details are below. A separate part of their website suggests their bank account may be with Nat West, however the main concern is the possibility to put client money in 95 day fixed term deposits. I would like to think they have more liquidity than that implies.

7 Client money and custody
7.1 The following provisions of this clause 7 apply to your
SIPP’s money held by us. It will be deposited by us with
a bank which for client money purposes meets the
FCA’s requirements. As regards that money:
(a) It will be held in an account designed to facilitate
efficient settlement of transactions and earn
interest at the same time. We will deal with your
SIPP’s money in accordance with the FCA’s client
money rules and guidance, which require us to
hold it in a client bank account, separating your
SIPP’s funds from ours. Such money may be held
by a bank with other clients’ money in a pooled
client account. This means that, in the event that
a default by a bank causes any unreconciled
shortfall in the money held in the pooled account,
your SIPP may share proportionately in that
shortfall. To ensure we maintain our ability to
appropriately diversify client money across highly
rated, strongly capitalised banks, we are able to
deposit some of our client monies in fixed term
deposits for up to 95 days. It is important to note
that this does not affect your ability to withdraw
funds from, or place transactions on, your account.
However, in the extremely unlikely event of default
by us there may be a delay in distributing the funds
or, in the event of a default by a bank holding client
money we may be prevented from withdrawing
such monies.

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Best SIPP provider

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About the Author

Rusty2

3 comments

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