Curtis Banks to launch drawdown product

Curtis Banks to launch drawdown product

Curtis Banks has unveiled plans for a short term pension drawdown product that allows clients online access to their funds.

Alongside results for the first six months of 2015, the Sipp and Ssas provider announced it will offer access to funds held in cash, with no transactional costs each time a withdrawal takes place.

According to bosses, the product will initially target the financial intermediary market, before rolling out to the wider community later in the year.

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The provider also announced revenues increased by 66 per cent during the first half, from £4.5m to £7.5m, compared with the comparable period last year, while operating profit increased from £1.3m to £2.2m over the same period.

During the first six months of the year Curtis Banks bought a client book from Friends Life.

The acquisition completed on 13 March 2015 and the operating revenues for the period only included three months of contribution from this source.

The latest results were also the first to fully reflect the acquisition of Pointon York Sipp Solutions last October.

New Full Sipp numbers from organic growth in the six months to 30 June 2015 stood at 1,416. Compared to the comparable period last year, this shows growth of 47 per cent and growth of 18 per cent over the forecast for the period.

Total full Sipps administered at the 30 June 2015 totalled 21,513.

The average revenue per Sipp has fallen to £609 in the six month period to the end of June, from £789 for the year ended 31 December 2014. The results put this down to the effect of the lower revenues from the eSipp book acquired as part of the Pointon York acquisition.

The eSipps have a lower fee structure and are less expensive to administer as they are online products.

Chris Banks, executive chairman of Curtis Banks, said with the increased regulatory environment for Sipp operators and forthcoming changes to capital adequacy rules we are seeing a continuing consolidation in the industry.

“We are being regularly approached by Sipp operators looking for an exit for a variety of reasons and we are evaluating opportunities as they come to us.

“While it is one of our objectives to grow the business by acquisition as well as organically we will only consider acquisitions of high quality books of Sipps that we know can provide at least the level of operating margins we are currently achieving.

He added: “The recent admission to Aim has provided us with the resources and ability to consider and fund all levels of acquisition.”