Pensions – Online personal pension
E-SIPP
Sippdeal Ltd
We reviewed four terms in this contract.
Term 1
What did we think was unfair?
A term gave the firm complete freedom to change its terms and conditions with immediate effect without giving customers advance notice.
Why did we think it was unfair?
The firm was not required to notify customers before any changes, and it was not clear to customers what the reasons might be for the firm making them. It was also not clear if customers could exit the contract freely, without paying a penalty or a fee.
What has the firm done?
The term was amended in February 2004 so that customers are notified 30 days before any changes by e–mail, secure electronic message or post. The term now specifies the reasons the firm can generally rely on to make changes to the terms and conditions. If the reason relied on by the firm is not one of those specified in the contract, customers can exit the contract freely.
Old term
'We reserve the right at Our sole discretion to change, modify, add or remove any portion of this document in whole or in part at any time. Changes to the Terms & Conditions of business will be effective when notice of such change is either advised to you or published on Our website. The use of the website by you after any changes to these Terms and Conditions of business will be considered acceptance of those changes.'
New term
'We reserve the right to amend or supplement these Terms and Conditions of business from time to time upon 30 days notice, such notice to be by e–mail, secure electronic message or post, and sent to the last address on our records. Such changes will take effect from the date stated in the notification. During this notice period We will not increase our then published transfer out fees and You will be free to transfer Your Fund to another pension provider, subject to the existing transfer out fees. The use of the Sippdeal Website by you after any notified changes will be considered acceptance of those changes.
We will generally only alter these Terms and Conditions of business for the following valid reasons:
- Significant changes in pensions or other relevant UK or European legislation
- Significant changes in regulatory regime or reporting requirements
- Changes in how the London Stock Exchange or other markets may work which may impact operation of Your e–sipp
- Changes in investment dealing or administration which may impact operation of Your e–sipp
- To avoid cross subsidisation between individual Member Funds' where the provision of certain services are being charged on an uneconomic basis
- Changes in ownership of our business or how it operates
- To reflect changes in how the internet operates
- To remedy manifest errors.
If we alter these Terms and Conditions of business for valid reasons that are not specified in this contract and you are not happy with those changes, then we will waive the existing transfer out fee should you wish to transfer your pension to another approved pension provider.'
Term 2
What did we think was unfair?
A term gave the firm complete freedom to vary its charges with immediate effect without giving customers advance notice.
Why did we think it was unfair?
The firm was not required to notify customers before varying their charges, and it was not clear to customers what the reasons might be for the firm doing so. It was also not clear if customers could exit the contract freely, without paying a penalty or a fee.
What has the firm done?
We noted the firm had not used this term in practice to increase its charges and disadvantage any customers.
The term was amended in February 2004 so that customers are notified 30 days before any changes by e–mail, secure electronic message or post. The term now specifies the reasons the firm can generally rely on to make changes to the terms and conditions.
If the reason relied on by the firm is not one of those specified in the contract, customers can exit the contract freely. Customers also have 90 days from the date the firm notifies them of an increase in charges to exit the contract at the existing charge rate.
Old term
'We will endeavour to ensure that charges are transparent, simple to understand and published on the Sippdeal website. They can be verified with Sippdeal directly at any time and can be confirmed in writing by surface mail or electronically. The charging structure will be reviewed from time to time at Our absolute discretion.'
New term
'We will try to ensure that charges are transparent, simple to understand and they will always be published on the Sippdeal website. We reserve the right to amend our charges from time to time upon 30 days notice, such notice to be by e–mail, secure electronic message or post, and sent to the last address on our records. Such changes will take effect from the date stated in the notification. During this notice period We will not increase our then published transfer out fees and You will be free to transfer Your Fund to another pension provider, subject to the existing transfer out fees. The use of the Sippdeal Website by you after any notified changes will be considered acceptance of those changes.
We will generally only alter these Terms and Conditions of business for the following valid reasons:
- Significant changes in pensions or other relevant UK or European legislation
- Significant changes in regulatory regime or reporting requirements
- Changes in how the London Stock Exchange or other markets may work which may impact operation of Your e–sipp
- Changes in investment dealing or administration which may impact operation of Your e–sipp
- To avoid cross subsidisation between individual Member Funds' where the provision of certain services are being charged on an uneconomic basis
- Changes in ownership of our business or how it operates
- To reflect changes in how the internet operates
- To remedy manifest errors.
If we alter our charges for valid reasons that are not specified in this contract and you are not happy with those changes, then we will waive the existing transfer out fee should you wish to transfer your pension to another approved pension provider.
If we give notice of an increase in our transfer out fee You will be offered an opportunity (for a period of no more than 90 days from the date of notification) to transfer to another approved pension provider at the existing transfer out fee.'
Term 3
What did we think was unfair?
A term made customers liable for any loss due to the unauthorised use of their online password.
Why did we think it was unfair?
It made customers bear the loss even when they were not negligent
What has the firm done?
Since February 2004, the term has stated that customers are only liable when unauthorised use of their online password occurs because of their negligence.
Old term
'Sippdeal will not be liable for any unauthorised use of a password or loss arising therefrom … '
New term
'Subject to any obligations We may have under common law Sippdeal will not be liable for any unauthorised use of a password resulting from negligence on your part or loss arising therefrom …'
Term 4
What did we think was unfair?
A term gave no warranty that the firm's dealing service would meet the customers' requirements or be uninterrupted, secure and error free. It was also not plain and easy to understand.
Why did we think it was unfair?
Customers' legal rights could be excluded if the firm's own service was inadequate, and terms must be plain and easy to understand.
What has the firm done?
The term is now easier to understand.
Two new terms say the firm will not exclude or limit its obligations under common law or the regulatory system.
Old term
'Your use of the Dealing service is at Your sole risk and We give no warranty that the Dealing Service will meet Your requirements or be uninterrupted, secure or error free although We will endeavour to ensure that the service provided is of a proper and reasonable quality.'
New term
'In particular we would draw your attention to the following:
- We may alter the Investment range made available through the Dealing Service at our sole discretion
- The internet may be subject to interruption or failure through no fault of Ours
- You are responsible for providing and maintaining the communications equipment (including personal computers and modems) to use the Sippdeal Website
- We cannot guarantee that the Sippdeal Website will support all browser types and be fully compatible with your communications equipment
- You are required to maintain a live email address for receipt of ongoing communications.'
'Nothing in these Terms and Conditions of business will exclude, or restrict to an extent prohibited by the rules of the FSA, any duty or liability we may have under the regulatory system (as defined by FSA rules)'.
'Nothing in these Terms and Conditions of business will exclude any obligations we may have in common law'.
What next?
Read more agreements from firms – see Unfair contracts.
Read more about Pensions.
Read more about our work on Unfair contract terms.