No Transfer Out Fee

In November 2016 the FCA released Policy Statement PS16/24: Capping early exit pension charges.

Following the freedom of accessing funds from pension schemes in April 2015, it was concluded that clients were facing significant early exit charges that presented a barrier to accessing these freedoms.

Therefore from the 31st March 2017 the FCA have placed a cap on early exit charges on existing contract based personal pension schemes to 1% and early exit charges that are currently set at less then 1% cannot be increased. Any personal pension schemes that were set up after 31st March 2017 could not be charged any early exit charges.

Some points were raised from the consultation that firms, such as SIPP operators, should be able to charge an administration fee for processing costs of the transactions due to the complexity of administering SIPPs.

The FCA therefore announced that fees levied to cover processing costs imposed at expected retirement date or before would not fall within the definition of an exit early charge.

Taking the FCA announcement into account, as well as being confident that you and your client’s will be impressed with our service we have made the decision not to charge a fee to transfer a SIPP to another provider whatever the circumstances may be. This decision does not just apply to clients over the age of 55, who are able to access their benefits, but to those under the age of 55 also.

By Richard Cropley | July 25, 2017 | 0 Comments

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