The brand’s flagship product, the Liberty Option SIPP, already charges one of the lowest annual management fees of any full SIPP. The company has today confirmed that it will continue to charge clients just £150 per year until at least April 2016.
Available both through IFAs and to execution-only clients, the Liberty Option SIPP is designed to be transparent and easy-to-understand — as well as flexible and low cost.
It can be opened online for free, and it pays 1% interest on its cash account; from which, consistent with its principles and adherence to TCF, Liberty SIPP will take no commission.
The Liberty Option SIPP only charges clients for what they use. So, for example, if a client wants to transfer in a property, they pay the property fee; if they want to take an income, they pay the drawdown fee.
The £150 annual fee covers free contributions, free access to online valuation tool, free annual reporting and one free standard investment, e.g. a regulated DFM (Discretionary Fund Manager) account.
Annual fees are the primary source of revenue for Liberty SIPP, and the company is keen to drive growth by attracting new clients. It is able to make the low cost pledge thanks to its especially robust financial position.
Last year the Greater Manchester-based company turned over £1,563,708, and its pre-tax profits more than doubled to £682,272.
With cash reserves of almost £1 million, it is well prepared for this year’s expected rise in capital adequacy requirements for SIPP providers.
John Fox, Managing Director, Liberty SIPP, commented:
"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.
“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."
