Around six out of 10 specialist retirement advisers admit they have been caught out by unexpected SIPP charges from providers, new research suggests.

SIPP provider Momentum Pensions found 60% of advisers said their clients have been hit by surprise charges in the past year, as of February. This has underlined the growing demand for transparency on costs from SIPP providers, the company claimed.

Momentum this week released the results of the research, which was conducted in February 2017 by PollRight, involving 107 advisers specialising in pensions planning.

Momentum’s research found 79% 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%) said the Capital Adequacy rules introduced in September last year have increased charges for standard assets while 76% say they have pushed up charges for non-standard assets. Momentum said its own research showed transfer business – and particularly defined benefit transfers – are driving SIPP business.

John McCreadie, Head of Sales (UK), Momentum Pensions, said: “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. ”