18 Jan, 2008
Will Henley - 17-Jan-2008
FundsNetwork is to waive core
administration charges for its advised Sipp. The waiver will apply
for IFAs who make pre-retirement investments into platform mutual
funds within the Sipp of at least £150,000.
The firm says the new terms will lead to potential cost savings of
£13,000 over 25 years per client.
It says the free Sipp will involve neither set up fees, yearly
administration charges, initial fund charges nor fund switching
charges. For in retirement, it says administration charges will
only apply if drawdown options are selected. The offer is to apply
for Sipp sales between 4 February and 2 May 2008.
Fidelity FundsNetwork head David Dalton-Brown says: "This is a
ground breaking move from FundsNetwork - a Sipp generally available
to IFAs which is free from any pension charges for clients in the
"With the run up to the end of the tax year in sight, this is
an outstanding offer. Based on a 25 year plan, these special terms
represent a potential cost saving of around £13,000 for the
FundsNetwork head of sales and marketing Rob Fisher says: "There
has been a lot of growth in the Sipp market, but still some people
have outdated views of Sipps' having an expensive wrapper. This
disproves that point categorically."
He adds: "Platforms have really led the charge in moving into the
retirement space. We are very serious in being a major player and
we think it will be really popular."
Under the offer, FundsNetwork says only new Sipp customers
investing applications with a gross value of £150,000 or
above investing in core investments will be eligible. Core
investments will include platform mutual funds, Standard Life
Policy Funds and the Sipp Bank Account.