This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X

Big Sipp firms wary of taking over small operators

  • Print
  • Comment
Helen Pow

Big Sipp providers could be reluctant to buy smaller firms that offer a wide range of investments.

The FSA’s recent investigation into smaller Sipp providers has prompted industry experts, including Suffolk Life marketing director John Moret, to predict a flurry of consolidation in the sector.

The report found that many small players are failing to meet their regulatory obligations, particularly on treating customers fairly.

But AJ Bell marketing director Billy Mackay says consolidation will not be straightforward as bigger players will be wary of the small operators’ practices.

Mackay says: “When looking at consolidation, you can be sure the bigger players would be keen to look at the nature of the assets held. In particular, most will be keen to avoid any assets that are or could be considered taxable property.

“The primary purpose of the taxable property legislation is to discourage investment by registered pension schemes into residential property, works of art, racehorses, vintage cars, fine wine and the like. The tax consequences simply cannot be ignored.”

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Second Opinion

sponsored by Bright Grey

Second Opinion

sponsored by Bright Grey

Fund Data

Editor's Pick



Poll

Has the FCA done enough to protect consumers with its pension freedoms ‘second line of defence’ rules?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments