Who sells SIPPs and how much do they cost?
SIPPs are sold by SIPP providers. These are either specialist firms, like the AJ Bell Group with their SIPP Centre or Suffolk Life, or the large pension companies such as Scottish Equitable. You will generally be charged a fee for setting up a SIPP plus an annual fee. The more complicated your SIPP the higher the fees are likely to be. A survey of the leading 19 SIPP providers in The Guardian (8 October 2005) shows set up fees ranging from no charge but permitted to invest in only a restricted range of funds to £705 by Greyfriars Asset Management. Most set up fees were between £300 to £400. Most annual fees were around £500. Given the charges SIPPs are likely to appeal only to high-worth individuals.
