PensionsMay 28 2013

Suffolk Life buys Origen’s Sipp book

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ByEmma Ann Hughes

Suffolk Life has snapped up the self-invested personal pension business of Origen Investment Services for an undisclosed sum.

The deal will see Suffolk Life accept the transfer of more than 400 Sipp plans from Origen Investment Services, following the latter’s decision to wind-up their scheme.

Origen will maintain its role as financial adviser to the Sipp investors.

Will Self, managing director designate of Suffolk Life, said: “Our acquisition of the Sipp book from Origen should leave no doubt about the direction of travel of the Sipp market and of the role that Suffolk Life intends to take within it.

“This is our fourth acquisition, including deals with Pointon York and Pearson Jones, demonstrating that we have a proven, sustainable acquisition process with clients at its heart. We have the capability and desire to intensify this acquisition program.”

Suffolk Life, part of the Legal & General Group, is once again making the acquisition from its own retained profits.

Mr Self said he expected the provider to remain strongly capitalised ahead of FCA changes to capital requirements for Sipp providers, which are expected to be finalised in the second half of 2013.

He said: “With first Pearson Jones and now Origen this is less about acquisition and more about quality adviser firms with strong post-Retail Distribution Review (RDR) businesses looking for sustainable, trustworthy long term partners for their clients’ Sipps.

“Their decisions validate the way we’re building our service proposition and business.”

David Hobbs, outgoing managing director of Suffolk Life who is due to move to Cofunds in July, said: “Adviser firms want a strong, sustainable long term operator for their clients for many years to come.

“That is the focus you’d expect from firms that put their clients at the centre of their thinking, but they are also telling us that they want a Sipp operator that isn’t going to compete for their customers in the future.

“Our strategy is delivering much-needed consolidation in the Sipp market, and will continue. I leave Suffolk Life as it steps up its ambition to grow through further acquisitions.”