Pension provider LV= has launched a low cost personal pension for clients too small for full Sipp charges, amid concerns from the Financial Services Authority (FSA) that small clients overpay for Sipps.

The pension has an annual asset-based fee of 0.25% and can transfer into LV=’s full Sipp, the flexible transitions account, which is charged at the standard fee structure.

Ray Chinn LV= head of pensions, said the provider had reacted to concerns of the FSA that smaller clients were hit by ‘unnecessary’ Sipp charges for investment flexibility they do not need.

‘With regulatory scrutiny on clients incurring unnecessary Sipp charges we are pleased to be able to offer this simple, clear, low cost option within our wider Sipp wrapper,’ said Chinn.

‘We appreciate that some clients want a no-frills, straightforward personal pension, and the wide range of investment funds available means that advisers can easily tailor the plan to suit their client’s risk appetite.’

The pension has access to 130 funds, from 16 fund management groups, including Threadneedle, which offers risk profiled multi manager funds, Fidelity, M&G, Schroders, and State Street, providing a passive investment option.