Glaswegian pension firm @Sipp has won a tender to administer Royal London’s self-invested personal pension book, which will see clients’ money migrated away from current administrator James Hay.
In an announcement published by @Sipp today (September 16), the company said the change in administrator will complete in early November for an initial term of three years.
The book, the value of which was not disclosed, includes a portfolio of commercial properties.
A spokesperson for James Hay said: “We concluded some time ago that our administration of the Sipp books provided by a number of third parties were non-core to our platform strategy. The Royal London book was one of these.
"We’ve been in discussions for some time with them about finding a new home for it and are pleased this process is completing. We’re working with @Sipp to ensure as smooth a transition as possible for the customers concerned.”
@Sipp administers £1.95bn of assets from 4,400 clients and 550 financial advisers. It is a specialist in commercial property and has around 1,250 properties within Sipps on its books.
Headquartered in Glasgow with another office in Essex, the Sipp provider’s managing director Eddie McGuire joined the firm back in 2016 after working at AJ Bell as its client services director.
Prior to that, he was a director at Jardine Lloyd Thompson and was also the originator of Sipp business Xafinity - previously Hazell Carr.
“We’re very pleased to win this competitive tender and happy to say we met all the necessary business and due diligence requirements,” said McGuire.
“The wider Sipp market is going through a turbulent time at the moment so we’re proud to prove our credentials as a safe and trusted pensions provider.”
Last month, Rowanmoor Personal Pensions Limited (RPPL) - the Sipp operator which was found to have failed in its due diligence on an introducer by the Financial Ombudsman Service earlier this year - entered administration.
The provider operates approximately 4,800 pensions, with assets under administration of £1.4bn.
A number of providers have also run into issues with the Sipp books of firms they have bought over the past five years.
Quilter was ordered by the Fos to pay at least £310,000 to two investors who were advised to transfer money into high-risk and unregulated investment schemes through companies it bought in 2017 and 2018. The advice was given prior to the acquisitions.