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One consequence of the current financial storm caused by the credit crunch is the rapid consolidation of banks, fund managers and insurance companies seen in the last few weeks. Equally importantly, we’re also now seeing more and more independent pension trustees being swallowed up by life assurers.

Consolidation can mean greater business efficiency and improved financial strength. But it can also mean a reduction in competition, innovation and choice, as well as leading to higher prices for poorer products and services.

And while no-one is yet bemoaning a lack of banks, fund managers or insurance companies, the reduction in the number of independent pension firms has now reached worrying proportions, and has potentially serious consequences for IFAs and their clients.

Independent Sipp and Ssas providers should enable you, the investment adviser, to have access to a pure unbundled tax wrapper. This means you can build a pension fund with real investment choice for high net worth clients. This includes commercial property as well as negatively correlated assets with interesting and inspiring investments such as gold bullion or whatever else best fits your investment strategy. The major benefit of freedom from the shackles of the life offices is that you can build a bespoke pension from anything HMRC allow, rather than being dictated to by a product provider.

Equally important, given the current volatility in markets, is that unrestricted Sipps or Ssass allow you quickly to manoeuvre into or out of suitable investments, taking profit, safeguarding gains or, for the contrarians amongst us, buying when there’s blood on the streets!

The feedback from investment advisers that I talk to up and down the country is that they want to be able to provide a high level of personal service, rather than being told the service standard is 48 days for that particular task. Advisers are also saying that it’s better to be working in partnership with a specialist that can provide the consultancy and technical expertise to find innovative solutions for their clients, rather than providing "one-size-fits-all" products.

That’s why I believe the recent disappearance of so many independent pension firms is so bad for our industry. If the life industry takes over completely, it will mean poorer products, slower service and bigger bureaucracy.

I can’t think of a single adviser who would wish for that – or wish it on their clients, either. The financial services industry desperately depends on the existence of independent firms to provide choice and drive innovation.