Over half of retirement advisers have been caught out by unexpected Self Invested Personal Pension (SIPP) charges, according to research by Momentum Pensions.

A study of over 100 advisers found that 60 per cent have seen clients hit by surprise charges in the past year. Momentum’s research found 79 per cent of advisers would support moves by the Financial Conduct Authority to ensure providers publish their charges in a consistent manner to enable cost comparisons.

Around two out of five advisers (42 per cent) said the Capital Adequacy rules introduced in September last year have increased charges for standard assets while 76 per cent said they have pushed up charges for non-standard assets.

Commenting, Momentum Pensions head of UK sales John McCreadie: “The SIPPs market is growing strongly but the support of advisers is crucial to maintain momentum across the market. It is clear that advisers want total transparency over charges from providers so they can make meaningful comparisons and recommendations to clients and it is depressing that so many say they have been caught out by unexpected fees.

“Transfers into SIPPs are a major issue particularly given the defined benefit pension focus which is highlighting the need to be clear on charging as well as on investment advice.”

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