High SIPP exit fees 'breach TCF'


SIPP exit fees have become so high they are breaking TCF obligations, according to Dentons Pensions Management.

Dentons business development manager Martin Tilley says the FSA should take urgent action to prevent providers levying disproportionate fees for unhappy customers to leave. Some providers are charging exit costs equivalent to three years of annual management fees, presenting an unreasonable post-sale barrier, he says. Tilley says the FSA should undertake an urgent review of SIPP exit fees and claims they have become increasingly high as interest rates have dropped. “Firms that were taking a significant cut on cash account interest rates have found their incomes squeezed since inter...

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