Should Providers impose third party property management fees?

Posted: 11/05/2011 15:43:34 by Global Administrator | with 0 comments

When will SIPP Providers wake up to the idea that a SIPP should allow a member to control their investment within their money purchase pension scheme!
 
We have recently picked up a case from another Provider who insists that a third party property manager is used to manage the £90,000 industrial unit leased to the member's own business with a rental of only £7,500 per annum.
 
The cost to the client for monitoring the rent collection (on standing order), checking that the appropriate insurance and Asbestos plans are in place (organised by the client) is a minimum of £1,000 per annum.
 
Our view is that the client should be able to control the costs within their own vehicles by carrying out their own property management functions if they so choose, not to have charges forced upon them. Otherwise, as is the case with the above client, they will walk away.