The recently increased capital adequacy rules for providers of self-invested personal pensions has also been given as one of the reasons for the spate of consolidation seen in the market in recent years.
Martin Tilley, director of pension technical services of Dentons, recently said although consolidation recently may appear to be slow, the number of Sipp operators has reduced from its high approximately three years ago by about 50 per cent.
Richard Ross, a chartered financial planner with Norfolk-based Chadwicks, said: “I would imagine most of those firms failing would have been larger firms with other issues or small firms who would have also failed the old requirements and so should probably be considering whether financial services was an appropriate career choice.
“At our end of the world the requirements seem fairly modest and I would expect most firms to have little problem meeting them.
“I think it was right they were reviewed and the levels introduced seem fair and appropriate.”