Origen could sell Sipp book
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Origen Financial Services is looking to sell its Sipp book, Money Marketing understands.
The IFA firm has around 900 Sipps and SSASs after entering the self-invested market in 2004. It is understood to have offered its Sipp book to product providers, saying it is not core to its business.
Managing director Stephen Greenstreet says: “With the onset of the retail distribution review looming, Origen is looking to focus on our core activity, which is advice to clients.
“As a manufacturer, we are currently reviewing our strategy with regard to Sipps but as yet no firm decisions have been made.”
Origen, together with Aegon’s other distribution arm, Positive Solutions, lost £16m last year, £8m of which came in the fourth quarter. This compares with a £1m loss in 2008.
In March, Aegon appointed former Sesame boss Patrick Gale as chairman of the distribution board overseeing the two businesses.
Last month, Pointon York announced plans to buy books of business from smaller Sipp administrators. The firm says it has a number of deals in the pipeline and predicts such business will double its book of Sipps in the next three years.
Pointon York says it is not in talks with Origen but would not rule them out.
Also in March, IFG completed the £35m acquisition of James Hay from Santander, with around 32,000 Sipps under administration.
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Readers' comments (2)
Anonymous | 8 Apr 2010 3:28 pm
Strange that Mr Greenstreet should say that providing products is not Origen's core business. Why was it reported last week that Rob Tinsley of Origen is looking to develop a variable annuity.
Also strange that Mr Greenstreet wishes to concentrate on what he beleives is Origen's core strengths, i.e. advising clients. In the past year or so Origen has slashed the number of advisers it employs. How can it be treating its customers fairly? The company has made massive losses year after year.
Aegon and its shareholders must be regretting ever establishing Origen and Positive Solutions. It is about time the FSA looked into how these large firms treat their customers.
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Anonymous | 10 Apr 2010 7:23 pm
Is this not a case of selling the family silver?
They used to go on about the SIPP when Origen was formed as it was their headline product. Now 5 years years on its for sale as compliants and regulatory pressure builds. I bet their loyal clients will be so please!
I wonder wants next? I suspect AEGON would like a return on their investment. Not further problems.
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