Xafinity has extended the deadline of its property transfer offer to advisers.
According to the provider, this is in light of the recent self-invested personal pension and small self-administered scheme consolidation activity in the market.
Last month, Hornbuckle parent Embark Group bought fellow self-invested personal pension provider Rowanmoor Group.
Also in July, Talbot & Muir bought the Sipp and Ssas administration business of Attivo Group for an undisclosed amount.
Before either of these deals were announced publicly, AJ Bell confirmed to FTAdviser that it had reclassified property funds that have been suspended as a non-standard asset under the Financial Conduct Authority Sipp rules.
Xafinity’s offer applies to the transfer of property from an existing Sipp or Ssas provider into Xafinity’s Sipp.
The offer is aimed at supporting clients with Sipps and Ssas who are either concerned about or are experiencing high charges or poor service, particularly as a result of administrator consolidation, but find the costs of transferring prohibitive.
It will waive the property set up fee of £850 and value added tax per property and the offer will run until 31 December 2016, with a deadline for the transfer of property of 31 March 2017.
In January this year, Xafinity Sipp and Ssas has reported a 25 per cent increase in commercial property investment.
Andy Bowsher, director of self-invested pensions at Xafinity, said: “The recent consolidation of providers is on the whole probably positive news for advisers, however, property has not always been a core asset class for many providers and as a result delivering good service at a fair price will be a struggle.
“Xafinity specialise in property. We have a portfolio of around 1,650 units, and are continuing to invest in our operations for the long-term to ensure flexible and personal service to serve advisers and their clients.”
Michael Roberts, director at Protect and Invest Chartered Financial Planners, said: “It is an offer worthy of consideration. When using Sipps and Ssas for property you need to be careful about who you choose.
“They need to be reputable and in it for the long term - it underlines the process of having a robust due diligence process and not go for a provider that will suddenly decide not to have property in their portfolio.”
ruth.gillbe@ft.com
