PensionsAug 8 2014

Sipp provider in first acquisition since cap ad paper

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Specialist Sipp provider Dentons Pension Management Limited has acquired the self invested personal pension book of MAB Pensions Limited, part of the Michael Ambrose Group, for an undisclosed sum.

This acquisition will see Dentons add approximately 125 Sipp plans to its existing book, now totaling over 4,000 high net worth Sipp and Ssas clients.

Dentons said for the first half of this year, 45 per cent of all new Sipps included commercial property within their portfolio, whilst 48 per cent were transfers from other Sipp providers. The business is based on strong due diligence procedures in terms of the processes and assets accepted, Dentons said.

On Monday (4 August), the Financial Conduct Authority published its long-awaited new rules on the capital Sipp firms will have to hold in reserve.

The FCA originally estimated that 14-18 per cent of Sipp operators may choose to exit the market as a result of the capital adequacy policy, but the changes announced will reduce this to less than 10 per cent, according to the regulator.

Ian Stewart, Dentons’ joint managing director, commented: “We have made no secret that we are an acquisitive firm, but it has to be for the right business or Sipp book. We were pleased to be in discussions with MAB as it is a perfect fit for us, being high quality and with the same underlying ethos of placing the client at the heart of everything we do.

“We are committed to the Sipp and Ssas market and the size of this acquisition is easily absorbable into our current business without impacting the service we provide. Our due diligence of the Sipp book suggests that it will not have adverse implications in respect of the new capital adequacy requirements.”

Michael Watson, director at MAB Pensions, said: “This was a very difficult decision to make as we have provided Sipp services to our customers for many years and value their custom, financial well being and security above all.

“However, having made the decision in the best interests of all we were determined to find the right provider who shares our commitment to high administration standards and practice.

“We firmly believe that we have done so and I am very confident that Dentons will prove to be the right choice to meet our customers’ Sipp needs in the future.”