Advisers urge FCA to tackle SIPP charges

The study by Momentum Pensions found 34% of advisers' clients have been hit in the past by charges which they had not anticipated.

Nearly half of advisers (47%) questioned say they find it difficult to compare charging structures among SIPP providers when making recommendations to clients.

The concerns about charging and being able to compare effectively are uniting advisers in support for further FCA action – 94% of advisers who responded say they would back action to require all SIPP providers to publish charging structures in a standard format.

Stewart Davies, Group CEO, Momentum Pensions, said:

“Contributions to SIPPs are growing strongly but the support of advisers is crucial to maintain momentum across the market.

“It is clear that advisers want total transparency over charges from providers so they can make meaningful comparisons and recommendations to clients and it is shocking that so many say they have been caught out by unexpected fees.

“SIPP providers need to respond as the market relies on adviser support to ensure the full potential of pension freedoms is achieved.”