SIPP provider Curtis Banks is to raise SIPP fees substantially in a major overhaul of its charges and the interest it pays on SIPP cash accounts.

The ‘mid SIPP’ annual administration fee will increase by £50 to £310 and the full SIPP fee will increase by £140 to £720.

The company, one of the UK's largest SIPP providers, says the move is part of a strategic change for the business which will alter the balance between fee income and interest paid on cash held in SIPPs.

The firm says for too long SIPP providers have relied on interest from SIPP cash accounts to cross-subsidise SIPP running costs and this needs to change.

To provide a “better balance” between fee income and interest income there are two key changes; to annual SIPP administration fees on the mid and full SIPP and also to the way interest is applied to the SIPP bank account.

Will Self, Curtis Banks CEO, said: “For too long SIPP providers have relied on the retention of cash interest to contribute to the running costs of SIPP plans. 

“Now is the time to drive clarity on this and we believe that this change is an important step in making the SIPP sector fully transparent and we expect others to follow quickly.”

“We believe that our fees remain competitive and they provide access to the enhanced Curtis Banks proposition and ongoing enhancements. We are committed to the SIPP sector and my vision is to continue to innovate and drive positive change and behaviour.

“The SIPP sector continues to be under invested, has a long tail of small providers and is under pressure from the regulators and PI insurers. SIPPs are part of my DNA and if we don’t continue to innovate and invest then we will stagnate and no longer be relevant for advisers and their clients.”

The company says the changes will mean greater transparency in terms of the annual running costs of SIPP plans and interest paid on the client SIPP bank account balances.

Curtis Banks says interest received on cash balances has previously been shared with clients on a discretionary basis in line with industry practice. New interest rates under the revamp have not been disclosed yet.

The expanding company has made a number of acquisitions in recent years including Talbot and Muir and fintech Dunstan Thomas. It has also committed to invest £5m in technology.