Praemium buys pension provider

Praemium buys pension provider

Investment management firm Praemium has entered into an agreement to buy pension provider Wensley Mackay.

The transaction is subject to the completion of conditions, including approval of the deal by the Financial Conduct Authority.

According to Praemium, the strategic acquisition allows Praemium to enter the UK private pension space and access a significant new source of funds under management via its existing adviser relationships.

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The acquisition of Wensley Mackay provides Praemium with immediate access to the market.

Praemium chief executive Michael Ohanessian said: “In the UK, platform providers have seen the retirement market open up following pension reforms introduced in April 2015 that demandated the use of annuity investments.

“Investors are exiting annuities and seeking other options for their retirement savings, with a major shift to pension schemes like Sipps that offer a wide range of investment options.”

Mr Ohanessian said adding a Sipp solution to its UK platform proposition enhances growth prospects by offering a complete package to its clients.

“When coupled with our range of innovative investment products, such as the 80 per cent Capital Protected funds that are ideal for retirees, we expect considerable upside from our UK and international distribution channels.”

Wensley Mackay Managing Director Paul Wensley said: “This deal offers a fantastic opportunity to grow the business and deliver the high quality service for which we have become known to a much larger group of financial services professionals and clients.”

Justin King, chartered wealth manager and chartered financial planner at Dorset-based MFP Wealth Management, said: “It sounds like a sensible strategic decision to facilitate - buying a licence for Sipps is sensible.”