SIPP providers accepting US persons

I've searched the site and can't seem to find this question logged before, but I'm a newbie so please excuse me if this has been asked before.

I've had a SIPP for a number of years now and having accumulated a not insignificant balance and being aware of the hidden charges recently decided to transfer my account to Fidelity Investments. I have now been made aware by them (they didn't ask when I transferred) that they don't accept US persons (discriminatory or what!).

Now faced with the prospect of transferring again, I'm looking to compile a list of all SIPP platforms that will accept US persons - useful not only for me, but for any others with the same predicament.

I know it's a minefield from a tax perspective and I'm aware of the many differing views especially when it comes to tax filing season  . Hopefully the planned introduction of a SIPP by Vanguard later will be fully compliant from both an HMRC and IRS perspective.

In the meantime, can anybody help with names of SIPP platforms that will accept US persons?

Thanks.

Good luck with that - I use AJ Bell / YouInvest and Hargreaves Landsdown. I am now US resident but these accounts were set up while I was UK resident - along with my bank account - and I don't plan on closing any of them!

A

Good luck with that - I use AJ Bell / YouInvest and Hargreaves Landsdown. I am now US resident but these accounts were set up while I was UK resident - along with my bank account - and I don't plan on closing any of them!

A

I'm planning to open a regular share dealing account, (not pension related) and those are on the list of platforms I am considering.  From your experience, which one would you recommend please, in terms of ease of use, customer service etc?

Well I was exclusively with Hargreaves Landsdown (HL) but I had 3 issues with them and moved most to A J Bell You Invest

1. HL cannot do a monthly drawdown distribution (I think these are called uncrystalized funds (UCLFPS or something similar)) without written instructions every month. I wanted to take out a similar amount each month (this helps me argue that these are periodic withdrawals and I get 25% tax free). AJ Bell allowed me to fill in one form and now I get a monthly transfer.

HL would not allow me to contribute any more now I am not UK resident; YouInvest will, albeit the minimum amount (3,600 or whatever it is). I believe UK pension law allows me to do this for 5 years after becoming non resident.

HL do not support structured products which I really like.

A

Thank you!

If yours isn't a retirement account you will need to be careful how you invest to avoid PFIC reporting.

If yours isn't a retirement account you will need to be careful how you invest to avoid PFIC reporting.

There will be no funds! 

Just by way of an update here:

Having been forced to close my Fidelity SIPP due to being a 'US person', I opened an I-Web SIPP (administered by AJ Bell) and have been very happy with the service, the fund selection (I invest mainly in Index ETF's) and the relatively low fees.

This morning, the bombshell email arrived from I I-web advising of changes in terms and conditions. Buried deep in the small print in the eligibility T&C's, the following:

d. not a U.S. person, a U.S. citizen or resident in the U.S. for tax purposes by any other means.

e. not a resident of Canada.

AJ Bell's Terms and Conditions are similar.

This seems to me to be a blatant violation of the Equality Act 2010, in that it is illegal to discriminate on the basis of your nationality (including your citizenship).

Aside from the legality issue of discrimination, does anyone know of UK SIPP providers who will now accept US person? Even Vanguard (ironically a US company) won't accept US citizens!

HELP..................................






 

I wonder if anyone has knowledge/experience of MyExpatSIPP: https://www.myexpatsipp.com/

Looks interesting although their fees are high and there is no evidence of on-line trading.

Thanks for the update Smitch, very disappointing for many here I'm sure.

I have a SIPP with AJ Bell on their YouInvest platform. I assume that is different from your IWeb although I suppose it the same company which manages them both. After I saw your message  I reviewed the T&Cs for my YouInvest SIPP. They changed as well and I had received an email from them but ignored it, as usual! Interestingly they distinguish between who can hold ISAs and this who can hold  SIPPs. If I remember correctly Canadians can't have either, and US persons may be asked the close their ISAs. I assume this is because as I understand it funds in ISAs need PFIC reporting whereas funds in SIPPS do not.

I already had a YouInvest account before became a "US person" so I've kept it and have continued to contribute to it. If anyone's interested their T&Cs are here:

https://www.youinvest.co.uk/sites/default/files/useful-forms/AJBYI_terms_and_conditions.pdf?utm_source=December+service+email+2019&utm_medium=email&utm_campaign=December+2019+service+email&utm_term=Our+latest+service+update&utm_content=63039&gator_td=rarECAJupbUpnI1Whjqaor0UmUcdvijY0hHKzTPPSTCt%2fO9dFs1O%2bmlkx4yy14lU1fYuzRt6UHNRY0lGUCiWkItAObA%2bDv9X%2btEfw777jre8T15nRKWCK7R9ni%2fG7b2o1qM%2fH3yDM5uwn2pV4qg9U%2bJQ85Q3EIIeMQNTsV8gevKZSkXi7PwEwdg%2bSdHt68Y7

As far as I can see it does not say US persons cannot open a YouInvest SIPP - just Canadians!

Addendum - from here:

https://www.youinvest.co.uk/faq/am-i-eligible-sipp

it says:

"You can have a SIPP if you're resident in the UK. You can also set up a SIPP if you're resident overseas but want to transfer a UK pension to the SIPP (though keep in mind you may not be able to make further contributions to it)." I have been able to continue my contributions although I can only invest the minimum 3,600 / year.

If you try and open one can you report back here and let us know?

Cheers

Art

Thanks for the research Art, their rules make sense.  I have a cash ISA and the interest is reported on my IRS return, and am aware that Stocks and Shares ISA's would be considered PFICs but is good to have it confirmed that SIPPs are only taxed by the IRS once distributions are made and are available through to US Persons through AJ Bell's YouInvest platform.

I wonder if anyone has knowledge/experience of MyExpatSIPP: https://www.myexpatsipp.com/ [nofollow]

I have corresponded with their founder and he seems friendly and helpful, but the company seems quite small in terms of assets under management. I respect that they are modern and trying to cater to an underserved category of global workers.

Another option might be Taylor & Taylor. I think of these as potential options for people who are unable to maintain accounts at the larger providers such as HL or AJ Bell. There are other small players, but I am very wary due to the history of dodgy companies in the pensions industry. I would be especially wary of anyone promoting QROPS.

Just by way of an update here:

Having been forced to close my Fidelity SIPP due to being a 'US person'

Would you mind sharing any details about how they forced you to close the account?  For example, if you took no action, were they going to switch your holdings to cash, distribute the money to you, or something else? Are you old enough to legally receive distributions from the SIPP?