Liberty SIPP has announced a two-year price freeze on the annual fee for their Option SIPP.
The move, which is unusual amongst SIPP providers, will mean that the annual fee for the Liberty Option SIPP will remain at just £150 until April 2016.
The Option SIPP was launched in November 2013 when Liberty streamlined their range of existing SIPP products.
The popular SIPP product, which is available through Independent Financial Advisers, or on an execution only basis, currently charges no set-up fee and can be used to hold a wide variety of assets from Cash to property, stocks and shares to funds.
Liberty is also unusual as they are one of the few SIPP providers who pay over all the interest they receive on the mandated SIPP bank account to investors. The account, which is used to receive contributions, pay out income, as well as hold money until it is invested, is held with Metro Bank and pays 1% interest per year.
Most SIPP providers retain some or all of the interest on such accounts, indeed for some it is a valuable source of income.
Profit providing stability
Despite retaining no interest from the SIPP bank account, Liberty have been able to freeze their annual fees due to their healthy financial position, which has seen them make a pre-tax profit of £682,272.
Commenting on the freeze, John Fox, Managing Director, Liberty SIPP, said: “Liberty SIPP has always prided itself on its transparency and low fees; our clients only pay for what they need, and don’t pay over the odds for services they don’t need.”
Fox continued: “Last year we pared down our proposition to just one simple, build-it-yourself product, the Liberty Option SIPP. Now we’re freezing its annual management charge at the current low level until at least April 2016.”
“This pledge is part of our commitment to win new clients and capitalise on our strong financial position.”
“With many larger providers struggling to adjust to the new raft of regulatory demands and highly geared on current account commissions, we believe we are one of very few SIPP providers in the market with sufficient capital adequacy.”