For the first £500,000 there will be a charge of 0.18 per cent, the next £500,000-£1m will have a charge of 0.15 per cent while assets above £1m will have a charge of 0.05 per cent. There will be no charge for online transactions and a £20 charge for each paper transaction. These charges will not apply for cash or other investments held within the Sipp.
James Hay's existing flat fees for Sipp administration will remain unchanged and clients who access the platform will be moved to a transparent pricing model. James Hay will return all fund manager rebates back to the clients' product bank accounts, meaning a reduction in funds' annual management charges. Instead, platform administration costs will be deducted from the client's cash account as a percentage of the assets held in Investment Centre funds.
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Managing director Tim Sargisson also commented on last week's proposals by the Financial Services Authority to quadruple Sipp providers' capital requirements to £20,000.
He said: "This is long overdue and in my view is what the industry needs. "Advisers and their clients need the reassurance that they are dealing with organisations which not only offer competitively priced and well administered products, but are financially robust and which they can be confident will be around in the future."
He said James Hay already ensured it held excess regulatory capital and was in a strong financial position with capacity to expand.

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