Xafinity, part of XPS group, says the new fees will be:
- Set up fee: Reduced from £150 to £95 + vat for online applications.
- Annual member fee: Reduced from £250 to £190 + vat for the standard single investment version (and from £299 to £240 + vat for a two investment SimplySIPP).
The company says the new pricing for the Xafinity SimplySIPP has been achieved as part of “ongoing technological advancements” to improve product value while continuing to offer the same service. There is a new ‘user-friendly’ online application and more efficient setting up of SIPPs, says the firm.
Further technological advancements are in the pipeline, says Xafinity.
Jeff Steedman, head of business development for SIPP / SSAS at Xafinity, said: “My team and I work exclusively with financial advisers and spend a lot of time listening to their needs and challenges, and this feeds directly into our regular product review process.
“We strive to make our SIPP offering more accessible and cost effective for clients while maintaining the same levels of personal service and upgrading the technology that our clients increasingly rely on. Reducing the ongoing annual management fee as well as the initial set up fee means we can offer the best value to all of our existing clients as well as new clients.
“Our SimplySIPP annual fee will now be amongst the very lowest in the SIPP market”
Andy Bowsher, director of Self Invested Pensions at Xafinity, said: “The financial press continues to be full of concern over the health of SIPP providers, and it may be that some are having to take a quite defensive position.
“Certainly, the vibrancy of product development and pricing of a few years back seems to have been subdued, and that is a real shame. I feel very fortunate to have a clean SIPP business that enables us to forward focus.
“We are committed to the TCF principles, and charging a materially reduced price to just new SimplySIPP clients simply isn’t fair. We are therefore reducing fees for all our existing SimplySIPP clients. We are a stable and profitable business who can make these decisions with a long-term outlook.”
Xafinity SIPP / SSAS has 70 staff and administers self-invested pension assets of over £2bn for more than 5,500 clients.