#4 The cost of transferring or selling an asset is not linked to the value of an asset

Number 4 in a series of headscratchers about SIPP capital adequacy proposals

An investment account held at a discretionary fund manager with £10,000 in it will have the same SIPP administration costs to transfer or sell as the same investment account with £100,000 or £1,000,000 in it.

The same is true of cash deposits, shares, unit trusts, directly held property, UCIS etc.

Using AUA as a proxy for the size of a SIPP operator and thus the expected cost of wind-down is flawed as it fails to take account of this.

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