Momentum plans to buy rival Sipp providers

Momentum plans to buy rival Sipp providers

Self-invested personal pension (Sipp) provider Momentum Pensions is considering strategic acquisitions of rival providers, as it says it is ready for the next phase of growth.

The provider stated that it made significant investment in technology and recruitment of administration staff, which has positioned Momentum for further expansion, and has funds available for acquisitions.

Last December, the provider beefed up its UK operation with three senior appointments.

According to Mark Gaywood, group chairman of Momentum Pensions, the company is interested in strategic acquisitions as the accelerated growth in the Sipp business in the UK is very positive.

He said: “However, any potential acquisitions have to be value-enhancing for us and we are very much focused on quality books of business, with an emphasis on standard assets in line with Financial Conduct Authority (FCA) guidance on best practice.”

Mr Gaywood said Momentum is not reliant on acquisitions for growth, and it has the capacity to ensure “high standards of service clients and advisers demand”.

Momentum reported growth of 35 per cent in the number of Sipp accounts in the last year, while assets under administration hit £1.25bn.

The average Sipp case rose to around £250,000, as the company is benefiting from the boom in defined benefit pension transfer business.

Sebastian Hurst, chartered financial planner at London-based Plutus Wealth Management, said consolidation in the Sipp market is a good thing.

He said: “The market had so many players, that Sipp administration was very complicated.”

Small providers such as Liberty Sipp have been targeted by bigger market players.

The company has revealed it has rejected three acquisition proposals from rivals as it wanted to maintain its costumer-based approach.