Consolidation a threat to bespoke SIPP Providers?
Posted on:
31
Jan
2012
by James Farmer
Stewart Dick, head of sales at Hornbuckle Mitchell, says: “Smaller SIPP providers are battling strong headwinds right now, including capital adequacy regulations and squeezed margins, inevitably making them easy targets to merge with the larger players in the market.
“Indeed, the rapid growth of the SIPP market over the past few years has prompted a wave of consolidation talk in the industry and we are surprised that this trend has not gathered momentum at a faster pace than we’re seeing.
“But with a rise in consolidation inevitably comes less choice for advisers and in turn, less variety for the client. The smaller, more niche providers run the risk of losing their individuality should they become part of a larger, financial outfit.
“It is therefore crucial that where mergers do take place, advisers are careful to carry out new due diligence and research to make sure the new set up does not lack the level of service desired.”
Tags: hornbuckle | IFA | sipp
