The situation can be even more complex where a transfer away is required. In these circumstances the disposal of assets, or transfer of assets in specie, can also be administratively time consuming bearing in mind checks need to be made to ensure title is correctly moving to the new provider. The Sipp – which in these circumstances is often a trust – must then be also be properly wound up.
While these fees might run into several hundreds of pounds, they should be time-recorded and in accordance with published fee schedules. The principles of treating customers fairly should always apply and be seen to be justifiable.
Clients who wish to utilise these more wide ranging investments should understand that the administrative burden in corralling numerous different investments held within their tax wrapper when benefits and transfers away are requested is a manual process. This is significantly more time consuming than with insured or simple Sipps, thus the fee charged will be commensurate with the work involved. This should also be understood by the FCA and by the tabloid journalists creating the headlines.
Martin Tilley, director of technical services, Dentons Pension Management
