Sipp provider entices clients by axing £850 property fee

A Sipp provider is hoping to entice clients from rival firms by offering to transfer land and property into its Sipp for free. Xafinity is scrapping the property setting up fee of £850 + VAT per property. The offer will run from 4 January to 31 August 2016.The firm believes this could combat a ‘double whammy’ of poor service and rising costs in the sector, which may be putting off clients.The move is designed to provide a lifeline to investors “worried that impending new capital adequacy requirements will be the straw that breaks the back of already stressed Sipps”, Xafinity said.Andy Bowsher, director of Self Invested Pensions at Xafinity, said: “The FCA has made it clear it expects a number of Sipp providers to fail in the face of its new capital requirements.“It is also well known in the adviser community that some Sipp & SSAS providers are struggling to provide a competent level of customer service, especially on property assets held.“Advisers also tell us that fees are being increased by some providers for holding property/land, so it is a double whammy for clients – poor service and increased fees.“The one-off costs involved in transferring to a new secure provider can be prohibitive, so we are looking to help."In the light of the potential uncertainty created by the ramifications of the regulatory changes he said that his firm “offers certainty for the future” because its weekly revenues “outstrip our entire Sipp cap ad requirement”.The new offer to clients includes all acceptable Sipp and SSAS commercial property and land assets, but does exclude those with an existing mortgage.Xafinity said it already offers a free check of any property assets that prospective applicants are considering transferring. These checks include:• Environmental initial assessment• Flood risk check• Residential element check

Sipp provider entices clients by axing £850 property fee

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