Mattioli Woods has said it hopes to triple its turnover as part of plans to expand over the next five to seven years.
Murray Smith, director of sales and marketing at the Leicestershire-based firm, said the FCA’s new capital adequacy rules would lead to large-scale consolidation across the Sipp industry.
He said: “We will definitely see the consolidation that has been much talked about start to accelerate in the coming months, and we will end up with a few large Sipp providers, which isn’t good for advisers or consumers because there is less choice.
“If consolidation doesn’t happen, Sipps will become more expensive because if you look at the figures, the capital that needs to be put aside for a new client is more than some providers are charging.
“We feel there are a good number of opportunities out there in the Sipp market and we have raised some money recently on the stock market.”
He added that the Sipp landscape would look quite different over the next five or 10 years.
The FCA’s new capital adequacy rules come into force in September 2016, when the fixed minimum capital required for Sipp firms will be £20,000.
Last month Mattioli Woods, which is listed on the Aim market, raised £18.6m through a share placing.
Mr Smith said the company was already in the process of spending this money, having signed heads of terms on a possible aquisition, which could be completed in the autumn.
He said: “We have got some big plans to grow the business in the mid-term.
“The business turns over £30m now and we see no reason why we cannot triple that. The market opportunities are definitely there.
“But we don’t necessarily want to be a business that grows by acquisition.”
Background
Mattioli Woods Pensions Consultants was formed in 1991 and launched its Sipp scheme four years later.
It now has offices in Leicester, London, Aberdeen, Glasgow and Newmarket, administers 6,000 clients and holds more than £5bn of assets under management, administration and advice.
Last month it completed the aquisition of Buckinghamshire-based IFA Boyd Coughlan.
