Curtis Banks has raised the cost of its Sipp administration fees as it seeks to create a better balance between fee income and interest income.
The Sipp provider said its annual administration fee for its mid Sipp will increase by £50 to £310, while the full Sipp will rise by £140 to £720.
In a statement, Curtis Banks said the fee increase formed part of its strategic transformation, which started with the acquisitions of Talbot and Muir and fintech provider Dunstan Thomas and will “see a better balance between fee income and interest income.”
Curtis Banks’ CEO Will Self said that while the fees remain competitive within the Sipp market, they will enable the firm to continue to innovate and invest going forward.
Self said: “We are committed to the SIPP sector and my vision is to continue to innovate and drive positive change and behaviour. I have a clear vision for not only the Curtis Banks Group but also the sector itself. 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.
“At Curtis Banks we have continued to invest in enhancing our proposition and have committed £5m in technology, over a five-year period. This has already delivered a new online portal and improves data visibility and the customer journey. Investment in systems, processes and our people is vital to ensuring our business continues to meet clients’ needs and expectations into the future, as well as for us to continue as an innovative and leading SIPP provider.”
Curtis Banks said a review had already shown a need for greater transparency in terms of the annual running costs of SIPP plans and a greater commitment to their clients regarding interest paid on the client SIPP bank account balances. Interest received on cash balances is currently used to help meet the annual running costs of SIPP plans and while this was normally shared with clients on a discretionary basis, Curtis Banks said it is making a “firmer commitment” to both advisers and their clients.
Self added: “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.”