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Posted: 03 December 2012 18:53:02(UTC)

Joined: 30/11/2012(UTC)
Posts: 3

I transferred a range of pension funds into a SIPP umbrella managed by SIPPCentre / AJ Bell. The funds ...amounting to circa £100K ,,,,are then managed by a discretionary fund manager (DFM_

SIPPCentre are meant to be a low cost provider , but my IFA receives more commission ...0.5% of fund value per annum.

I wanted to move my funds out of the DFM and abandon my IFA with a view to having SIPPCentre manage my pension portfolio based on funds which I select myself ( eg Vanguard) , Bizarrely SIPPCentre tell me I cannot remove my IFA and SIPPCentre only respond to instructions received by my IFA !?

Apologies for slightly mixed up post, but I want a simpler means of managing my pension funds and at minimal cost. I cannot see how SIPPCentre and in particular my IFA add any value in return for their combined ~ 0.75% AMC. Ideally i'd like to manage funds myself or deal directly with a DFM and save at least 0.75% charges.
Alan Jay
Posted: 09 December 2012 10:36:34(UTC)

Joined: 18/10/2012(UTC)
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Pick a new SIPP provider and complete their forms for them to take over your SIPP. The new provider will then deal directly with SIPPCentre/A J Bell to get your funds transferred.

I now use BestInvest, having started out with Hargreaves Lansdown, and make all the investment decisions myself. There will be a charge to transfer the SIPP but when I did it BestInvest reimbursed me with my costs.

As you would not be receiving advice with your new SIPP provider ongoing charges would be minimal and you can invest in stocks and shares as well as funds.

I have a preference for Investment Trusts over Unit Trusts as statistics indicate that the former give a better return, due in part to having smaller management charges and not paying commission to IFAs. Another advantage of Investment Trusts is the fact that their prices are quoted on the stock exchange so you know their value and can deal in them at any time whereas Funds are valued once a day and you don't know what they will cost when you buy or what you will realise when you sell until after the deal has been done.
1 user thanked Alan Jay for this post.
banjofred on 15/12/2012(UTC)
charles fantham
Posted: 09 December 2012 16:10:54(UTC)

Joined: 06/02/2012(UTC)
Posts: 1

why bother with a SIPP at all..they are designed to help overintermediaries make money out of you. SSAS is the common sense answer.
Alan Jay
Posted: 09 December 2012 17:10:24(UTC)

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charles fantham;17150 wrote:
why bother with a SIPP at all..they are designed to help overintermediaries make money out of you. SSAS is the common sense answer.

A Small Self Administered Scheme (SSAS) is an occupational pension scheme which would be more expensive to set up and run, always assuming that it could be set up in the case in question, which I doubt as my understanding is that contributions need to come vie employment.

After setting up, the funds need to be invested so costs are going to be incurred. The secret is to do something that keeps them to a minimum, hence the suggestion of a low cost SIPP.
J Thomas
Posted: 09 December 2012 21:11:16(UTC)

Joined: 22/02/2012(UTC)
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Someone in your position may wish to consider Standard Life My Folio SIPP pensions. There is no charge for transfers in if you are not taking advice, and no charge for additional contributions. You can conduct all business directly with no IFA involvement, hence no fees, initial or trail.
The AMC is 0.95% for large fund values which I think is reasonable for an average return of 12%.
Worth considering to ascertain if it would suit yourself.
Steve L.
Posted: 13 December 2012 16:42:00(UTC)

Joined: 23/10/2011(UTC)
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You may want to consider BestInvest Advisory SIPP, from 2013 their charges will increase to 1.25% - but until the end of the year I believe they are holding 0.75% (no vat in addition). This is very competitive for an advisory service.
Posted: 15 December 2012 08:02:54(UTC)

Joined: 14/03/2011(UTC)
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Whatever you do get out of that bear trap.

Seems someone is dipping his bread in your gravy even though you have moved into a SIPP
(which itself has annual charges).

The advice form others here makes sense - mov eon to another. If your sIPP provider wont obey instructions from the man with the money - that is crazy.

When i moved to HL i simply filled in the box saying no IFA

Also you could contact your ifa and instruct him to advise the SIPP provider the relationship is over.

Why do you need advisory sipp at all - its easy either you pick the funds ot los eyou money or you appoint the advisor who loses it even faster, and charges you a fee.

Seems you are being shafted

How unusual in this world of personal finance.....
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