Schedule of Fees. for the Suffolk Life MasterSIPP. From 1 June 2015

Transcription

1 Schedule of s for the Suffolk Life MasterSIPP From 1 June 2015 This document is part of a set, all of which should be read together: Key Features Your Personal Illustration Schedule of s Schedule of Allowable Investments Terms and Conditions Application Form

2 This document sets out the fees for establishing and administering a Suffolk Life MasterSIPP. We ve highlighted the technical terms and included explanations of these in the Terms explained section on page 7. All fees are subject to VAT unless otherwise stated. Establishment and annual fees Establishment fee 300 at outset Annual administration fee 545 in advance What are the establishment fee and annual fee for? The establishment fee covers: verification that our application form is fully completed (including correct anti-money laundering documentation), and the creation of the plan, including opening the default SIPP bank account. The annual fee includes: all general communications, the preparation of the reconciled annual statement, and fulfilling regulatory requirements. Transfers in fees Cash transfer in - streamlined transaction nil Other cash transfers in 75 each transfer (max 300) In specie transfer in 150 Transfer in of crystallised funds additional 155 each sub plan (max 310 for each scheme) What is a streamlined cash transfer? This is where Origo Options is used or the adviser provides a completed transfer discharge form and chases the transferring pension scheme up to the point of the transfer. Does the in specie transfer fee include your fees for transfer of a property? No. The in specie transfer in fee is payable in addition to any property fees which are due if property is transferred as an investment. Please see the Investing in property fees section for details. 2

3 (continued) Contribution fees Contributions in Euros or US Dollars 100 Refund of contribution (where allowed) 25 In specie contribution (each investment) 700 How do the fees for in specie contributions work? The process is complex and needs more than just transferring the assets as it also involves the establishment of a debt and the settlement of the debt with the assets rather than cash. This involves significant work from us, you and your adviser, if applicable. Our fee covers the cost of handling the contribution up to the point where we are required to chase for settlement of the debt. From then on we will charge on a time cost basis. The full details of the process and risks are detailed in the Using investments to make a personal contribution guide available from our website or on request. Investment fees Investment dealing within an investment firm account: - an e-investment affiliate nil - a non e-investment affiliate each transaction 25 Investments held directly each transaction 50 (max 150) Establish or process transaction on a fixed term deposit account 50 non e-investment affiliate annual fee - each plan 100 Unregulated Collective Investment Scheme (UCIS) annual fee - each plan 150 in advance Change of investment firm 150 Connected party transaction 250 Corporate action (when processed through Suffolk Life) 25 Why do you charge for transactions made through non e-investment affiliates? Where an investment firm does not supply electronic data in a form acceptable to us, we must receive paper contract notes and manually enter these into our systems. A purchase and sale are regarded as two transactions. Where the first holding with a non e-investment affiliate is bought or transferred in part way through the year, we will charge a full annual fee for the period to the next anniversary. Is a single investment application for two directly held funds, one or two transactions? This will count as two transactions. We apply a transaction fee for each individual fund purchased or sold but we cap the charge at three transaction fees. So, a single application for three or more funds will attract a maximum charge of 150. Why do you charge for holding an Unregulated Collective Investment Scheme (UCIS)? This is for the enhanced controls and monitoring to meet our regulatory requirements. Where the first UCIS holding is bought or transferred in part way through a year, we will charge a full annual fee for the period to the next anniversary. Do your fees include the investment firm s fees? No, our investment transaction fees relate to the recording and reconciling of investment transactions by us and do not include your investment firm s fees and charges. You should ask your adviser for a copy of your investment firm s documentation including their charges. This will be between you and your investment firm. 3

4 (continued) Investing in property fees Annual property facility fee (for each plan for each property) 100 Additional annual fee for VAT elected properties (for each property) 150 (VAT exempt) in advance Purchase/transfer in specie acquisition fee - panel solicitor 1,450 (VAT exempt) - off panel solicitor Annual property accounting fee (only for properties partly owned by Suffolk Life) Annual property management fee (only for properties wholly owned by Suffolk Life) around 1,700 to 1,900 (VAT exempt) around 600 (VAT exempt) around 700 (VAT exempt) in arrears Sale, disposal or transfer out in specie - panel solicitor 600 (VAT exempt) - off panel solicitor Variation of proportion of property ownership around 600 to 800 (VAT exempt) around 500 to 700 (VAT exempt) How do you calculate fees for dealing with the purchase of property? Where a solicitor from our panel is selected there is a fixed fee, otherwise our fee is principally time cost based reflecting time spent and the degree of responsibility involved. For more information on our panel of solicitors, including their fees, please see our Panel of Solicitors document, available on our website. Solicitor and valuer fees, together with all disbursements relating to the acquisition, sale or management of any property, are payable from your plan. The property facility fee reduces dependent on the number of investors in the property. If 1-5 investors hold the property there is a fee of 100 plus VAT for each investor, 6-20 there is a fee of 50 plus VAT for each investor and 21+ the fee drops to 25 plus VAT for each investor. What do you do for your property management fee? We deal with all general property management issues including invoicing the tenant for rent, chasing any rent arrears, insuring the property on our block policy, invoicing the tenant for the insurance premium, making loan repayments and dealing with tenants requests concerning matters such as assignments, underlettings and alterations. This fee is charged to the property account so where we wholly own the property on behalf of more than one plan it will be paid by each plan on a pro rata basis in accordance with the ownership percentage. This fee applies only to the properties wholly owned by Suffolk Life and not those jointly owned by Suffolk Life with another party. Property inspections are not included in the property management fee. What do you do for your property accounting fee? This fee does not apply when we wholly own a property on behalf of plan holders. Instead, it applies when we own a share of the beneficial interest in the property and the legal title is held by a nominee. The fee covers our time spent: corresponding with the nominee; chasing the nominee for accounting information and if necessary receiving funds from and transferring funds to the nominee; reconciling the nominee s accounts; posting this information on our system; and obtaining and recording details of the property insurance where the nominee insures it or insuring the property where it has been agreed that we will arrange the insurance. This fee is charged to the property account so where we own a beneficial interest in the property on behalf of more than one plan it will be paid by each plan on a pro rata basis in accordance with the ownership percentage. Do you charge VAT on property fees? When we acquire a property or an interest in a property it is through Suffolk Life Annuities Limited (an authorised insurance company) or its nominee. Because insurance business is currently exempt from VAT, there is no VAT payable on any fees relating directly to the property investment. This includes the acquisition fee, management fee, accounting fee and the fee for VAT elected properties. The annual property facility fee is subject to VAT. 4

5 (continued) Benefits and payment fees Drawdown set up The lifetime allowance test at age 75 Switching capped drawdown plans to flexi-access drawdown Annual income facility fee (where income is taken) Uncrystallised funds pension lump sum (UFPLS) payment 155 each event 155 each sub-plan (max 310) 155 each payment in advance Annuity purchase 100 Review of income limits for a capped drawdown plan (carried out at least every three years prior to age 75 and annually thereafter) 155 each sub-plan Payment of the total remaining fund through flexi-access drawdown or UFPLS 300 What do your fees for taking retirement benefits cover? The drawdown set up and UFPLS payment fees cover the work required to reconcile and revalue the plan in accordance with legislation and then pay any lump sum payments due. A drawdown set up fee will be charged for each designation to either capped drawdown or flexi-access drawdown. An annual income facility fee covers: the administration of PAYE payroll, deduction of tax if required, making the appropriate returns to Her Majesty s Revenue & Customs (HMRC), and the facility to vary the level and frequency of income payments. The review of capped drawdown income limits covers the work required to reconcile and revalue the plan and calculate the new maximum income in accordance with legislation. A fee will be charged if the remaining fund is taken as pension income through flexi-access drawdown or UFPLS. This fee covers the reconciliation of the plan, making the final payment and reporting to HMRC. Transfers out fees Cash transfer out 100 In specie transfer 150 Transfer to an overseas pension scheme additional 150 Forwarding money to the receiving scheme after the plan is closed 100 Does the in specie transfer fee include your fees for transfer of a property? No. The in specie transfer fee is payable in addition to any property fees which are due if property is transferred as an investments. Please see the investing in property fees section for details. What do you do if you receive additional money following the transfer? We may receive dividends and other money after the transfer has completed. We will amalgamate these for six months after your plan is closed and forward them to the receiving scheme (less a fee). If our fee is more than the money we received, we will keep the money. 5

6 (continued) Other fees (including banking/borrowing) Day to day debits and credits (including BACS and cheque payments) Payments made by Faster Payments and CHAPS nil The prevailing rate as charged by the Bank of Scotland, currently: 3 - Faster Payments, and 10 - CHAPS. To prepare additional reconciled valuation time cost min 100 Establishment, variation, reduction or repayment of loan facility time cost Annual borrowing facility fee (each plan) 100 in advance What are the fees if my plan borrows money? If your plan borrows to purchase property, the initial costs of dealing with the mortgage will be charged for principally on a time cost basis as part of the overall purchase process. If your plan borrows for any other purpose, there is a fee for arranging the loan and a facility fee for ongoing maintenance and monitoring of the loan, as set out in preceding pages of this schedule. Additional fees will be charged on a time cost basis should the borrowing be varied, such as part or full repayment. General Notes Please note: references throughout this documents to we, us and our are to Suffolk Life Pensions Limited. How does VAT apply to fees? Plans are written under a trust arrangement and therefore the fees are liable to VAT at the standard rate. Insurance arrangements are, however, exempt from VAT, and as commercial property is held through a selfinvested insurance policy no VAT will apply. We will calculate all the VAT liabilities and collect these from your plan as appropriate. When are fees due? The establishment fee and the first annual fee are due on the commencement date (as defined in your membership schedule). Subsequent annual fees are paid in advance on each subsequent anniversary. The income, property, non e-investment affiliate, Unregulated Collective Investment Scheme and borrowing facility fees when applicable are payable in advance. The first property facility fee is charged from the time it becomes payable to the next plan anniversary on a pro rata basis. The property management fee and property accounting fee are taken in arrears. All other fees quoted are paid from your SIPP bank account on completion of each transaction. We will not refund (in part or in full) any fees that have already been charged: on payment of the total remaining fund through flexi-access drawdown or UFPLS; or when a transfer out is initiated. Can you increase your fees? Yes. Please see the Terms and Conditions for the details. Do you charge interest on overdue fees? If fees are not paid within 30 days they will become overdue. Interest is charged on overdue fees at 2% above the Bank of Scotland yearly base rate. Are there any additional fees? We reserve the right to charge for additional services on a time-cost basis relevant to the expertise and seniority of our staff involved. We will either provide an estimate of the charge or the basis on which it will be calculated for your acceptance before the work is carried out. Do you receive any other income in relation to my plan? Yes. Where the rate of interest earned by any SIPP bank account is less than the interest paid to Suffolk Life across all the accounts that Suffolk Life has with the bank, we will retain the difference. We will also make arrangements for insuring property held for your plan on our block policy. If any income is earned by us in respect of such arrangements, we will retain it. In certain circumstances we may also receive income from investment transactions (including transactions using Stocktrade) and the holding of investments by an investment firm (including those on the Cofunds platform). We will inform you before we receive income from another investment firm you have chosen for your MasterSIPP. Is there anything else I should know? All expenses, charges and outgoings whether in respect of the investments contained in your plan (including the costs of purchase, sale, management, maintenance and valuation of freehold and leasehold properties, if any, and other investments) or other expenses however incurred shall be charged to your plan. In the event of any levy, taxation or other charge being imposed on us directly attributable to your plan under any statutory provision, we may recover from your plan an amount in direct proportion. The amount will be calculated on the same basis. 6

7 Terms explained Capped drawdown Connected party transaction A way of taking a pension income directly from your drawdown pension fund which is subject to an annual limit set by HMRC. Capped drawdown is only available under your plan if the drawdown pension fund of part or all of an arrangement was designated to capped drawdown on or by 5 April This includes amongst others, your spouse, registered civil partner, children, parents, brothers, sisters and other direct descendants and ancestors of you and your spouse or registered civil partner. If you need more information, please contact us or your adviser. A connected party is defined (as a connected person ) in Section 993 of the Income Tax Act Corporate action An event initiated by a public company or collective investment scheme that affects the securities issued by that company and requires a response from us. Crystallised The part of your plan from which you have taken drawdown benefits. E-investment affiliate A company with whom we are able to exchange information electronically, cutting out the need to manually handle paper. Flexi-access drawdown A way of taking a pension income directly from your drawdown pension fund that allows unlimited withdrawals. In specie The transfer of an asset other than cash. For example, you may ask us to request an in specie transfer from your current pension scheme. In these cases, we will receive the investments that makeup your pension instead of solely a cash transfer. Investment firm A firm appointed by you to manage the investments within the plan on your behalf or to carry out your investment instructions. Origo Options A secure web-based tool that facilitates the exchange of information between pension schemes that has introduced efficiencies into the transfer process. Transfer in Transferring the value of pension benefits from an existing pension scheme to your plan either in cash or in specie (see above). Unregulated Collective A collective investment scheme that has not been Investment Scheme (UCIS) authorised or recognised by the Financial Conduct Authority. Uncrystallised funds A way of taking retirement benefits as a lump sum. pension lump sum (UFPLS) 7

8 Suffolk Life, 153 Princes Street Ipswich, Suffolk, IP1 1QJ, UK T F We may record and monitor calls. Call charges will vary. Suffolk Life Pensions Limited is authorised and regulated by the Financial Conduct Authority (number ) and is registered in England and Wales (number ). Registered office: 153 Princes Street, Ipswich, Suffolk, IP1 1QJ, United Kingdom. Q May 2016