Fees on Sipps vary between different providers and can often be expensive with many charging a set-up fee, an annual management fee, dealing charges and exit/transfer fees.
The survey, conducted by Pollright with responses from 101 financial advisers, found that 34% of advisers said their clients had been hit by unexpected charges on their Sipps – leading many to demand greater transparency on costs by Sipp providers.
Furthermore, nearly half of advisers questioned said they found it difficult to compare charging structures among Sipp providers when making recommendations to clients.
As a result, 94% of pension advisers said they would support further action by the Financial Conduct Authority (FCA) requiring all Sipp providers to publish charging structures in a standard format.
Stewart Davies, chief executive at 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.”
