Self-invested personal pension (Sipp) provider Berkeley Burke has written to clients demanding they pay a fee on assets valued to be worthless by lawyers.
In February, the provider asked investors to make a payment for storage pod investments, in addition other costs such as the Sipp administration fees.
The letter stated: “Please find enclosed our fee invoice in respect of the StorePod element of your plan.
“This fee is charged annually and is separate from your normal annual administration fee.”
Berkeley Burke charges £150 plus £30 VAT for a “store pod annual fee”. This is deducted directly from the client’s fund and added to the annual administration fee of about £250 plus VAT.
The firm hasn’t made it clear what the new fee is used for and is facing potential legal action following accusations that they’ve mis-sold storage pods and other assets.
The Financial Services Compensation Scheme has repeatedly expressed concerns regarding storage pod investments.
Often, people will invest in storage pods on the understanding that they can grow their savings and make the most of low-risk returns with a generous interest rate.
However, more often than not, investors are misled and lied to by Sipp providers who fail to properly inform them of the risks involved.
In some cases, investors can be encouraged to pour their savings into schemes that have no potential for growth and are purely designed to make money for the providers.