PensionsJul 25 2016

Talbot & Muir buys Attivo’s Sipp and Ssas business

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Talbot & Muir buys Attivo’s Sipp and Ssas business

Talbot & Muir has bought the Sipp and Ssas administration business of Attivo Group for an undisclosed amount.

About 1,070 Sipps and 14 Ssas will be added to Talbot & Muir’s existing book at the end of August, taking assets under administration up to £1.8bn.

Graham Muir, director at Talbot & Muir, said the acquisition is an important part of the firm’s growth strategy.

He said: “We are focused not only on acquisitions but strong organic growth. Attivo Group have a well-managed book which is not only a good fit with our business, but will also provide a significant boost to our scheme numbers and financial strength.

“As well as maintaining a strong strategic partnership with Attivo Group going forwards, we remain acquisitive and further deals are being considered.”

Stephen Harper, chief executive at Attivo Group, said: “Our focus is to build on and expand our chartered, independent financial planning business, and it became clear that our Sipp and Ssas clients were better served by a company with a specialist focus on pensions administration.”

In June, Talbot & Muir’s head of technical support Claire Trott explained that September’s capital adequacy rules were causing many wealth managers to reassess the viability of continuing to administer ‘bolt-on’ Sipp and Ssas books.

“There are quite a few financial advisers, discretionary fund managers or wealth managers out there that have historically run a Sipp book, but with all the capital adequacy rules, they don’t want to stick that money to one side, and that’s the issue,” she stated.

John Stirling, chartered financial planner at Essex-based Walden Capital, said there have been a number of high profile Sipp and Ssas administrator takeovers over the last 12 months, and this is only the latest, it is neither the largest, nor I am certain the last.

“There have been even more carrying on below the radar where neither purchaser nor purchased want to make a splash.

“Whilst it is tempting to put this down to the new capital adequacy requirements - I think it more likely that whilst that is a concern, the greater concern is simply administrative capability.

“Many of these businesses have processes that need re-engineering to reflect modern business processes, and the costs of doing that can dwarf the capital adequacy increases. There is a real desire for scale in this sector, and it seems that almost every provider is either an acquirer, or seeking to be acquired.”

ruth.gillbe@ft.com