Curtis Banks has agreed a multi-million pound deal to administer Zurich’s self-invested personal pension business.
The contract is for a minimum 10 year period, with Curtis Banks receiving an annual fee for each Sipp administered, subject to agreed minimum aggregate annual amounts.
The fees payable under the contract are front end loaded over the first two years to reflect the initial workload of taking on the book of Sipps during the contract term. The fees in each of the first two years amount to £1.25m, with an additional initial payment of £750,000 during the first year of the contract, to cover costs during the transition period.
Curtis Banks expects to achieve its current profit margins through the administration of this book of Sipps during the contract term.
Under the contract Curtis Banks will be a white label administrator and therefore not required to provide client facing account management services.
Rupert Curtis, the firm’s chief executive, stated: “This transaction fits well with Curtis Banks’ proven expansion strategy and enhances our position as the go to consolidator for financial services companies seeking a specialist Sipp administrator.
“This book of Sipp’s further increases Curtis Banks’ position in the UK’s hierarchy of Sipp administrators.”
A Zurich spokeswoman confirmed the deal, adding that customers with policies administered by Capita and set up between 2007 and 2012 will in future be administered by Curtis Banks, following Capita’s decision to exit the Sipp market.
peter.walker@ft.com
