Following the recent acquisition of the Alliance Trust Select SIPP by Curtis Banks, the consolidation in the SIPP market stepped up a pace yesterday, with the purchase of a number of Pointon York SIPPs by Suffolk Life.
Suffolk Life, owned by Legal & General, has bought around 1,700 SIPPs from Pointon York, taking their total number of SIPPs for the Ipswich based firm to approximately 18,000.
Commenting on the purchase, David Hobbs, Managing Director of Suffolk Life, said: “Suffolk Life has been committed to the self-invested pension market for over 40 years and we have made no secret of our intention to grow our business both organically and via the right acquisitions.”
Hobbs continued: “The Pointon York book of business fits well into the bespoke end of our proposition and should add around 1,700 additional SIPPs.”
Pointon York will continue to run a number of different SIPP products, including their popular Pointon York e-SIPP, as well as developing SIPPs for other businesses, in particular financial advisers and wealth managers.
Jo French, Managing Director of Pointon York, said: “We are seeing impressive results with this strategy. Working with strategic distribution partners in the last year has already confirmed the validity of our model through increased business.”
She continued: “We chose Suffolk Life as our partner in this transfer since they are experienced in handling the business of full SIPPs as well as being a leading SIPP provider and administrator.”
Many industry experts have predicted further consolidation in the face of tightening regulation and a likely increase the capital adequacy requirements following FSA reviews into the sector.
The two recent acquisitions by Curtis Banks and Suffolk Life have also shown that a SIPP provider can sell part of their SIPP book, whilst allowing it to concentrate on core activities or move into new markets.