Xafinity has frozen its self invested personal pension fees for the coming year, following research and adviser feedback citing an increase in costs.
Research by the firm highlighted the fact that advisers have seen an increase in Sipp fees, with 62 per cent seeing a rise in set up fees, 94 per cent a rise in annual fees and 44 per cent an increase in exit fees.
Moreover, 39 per cent of advisers believe providers are increasing exit fees in order to discourage transfers out.
The firm said in a note: “At a time when many providers are increasing their charges, some across the board and some selectively targeting fees, such as exit charges, Xafinity has chosen to hold its fees for another year.”
Andy Bowsher, director of self invested pensions at Xafinity, said: “Fees are currently a highly emotive issue in the market, and many financial advisers that we speak to believe that some providers are abusing their contractual ability to increase fees.
“Our view remains that we will charge fees on the basis of the costs to manage the accounts and, for this reason, we are delighted to be able to freeze our fees for another year.”
“Xafinity is also a well-capitalised Sipp provider and we are in a very comfortable position against the recent announcement by the FCA in respect of capital adequacy requirements.
“We were prudent and disciplined in our approach to unregulated investments in the years when some providers were not so. We currently hold capital well in excess of both the current and recently announced future FCA requirements.”
