Capita has put 350 jobs at risk after confirming plans to close its self invested pensions administration business due to increasing competition and regulatory costs.
In an interim management statement published this week, the firm revealed it will close its Salisbury-based Capita SIP Services business over the next 12 months.
A Capita spokesman says the business is “sub-scale and therefore unviable”. He says 350 employees will be affected by the decision and the firm will begin a formal consultation process early next year.
The spokesman says: “We informed shareholders at our half-year results that our self invested pensions administration business operates in an increasingly competitive and highly regulated market, is sub-scale and therefore unviable.
“Following a detailed review, we are taking steps to close this operation, a process we expect to take 12 months.
“In the meantime, our focus is on working with our corporate partners on behalf of their customers to determine their preferred strategy for the future of their SIP business.”
It remains unclear how members of the schemes Capita administers will be affected by the move.
Capita SIP was previously known as Capita Personal Pensions Management Limited. It was renamed in 2005 as the firm focused its service on the Sipp market.
MoretoSipps principal John Moret says PPML, which was established in 1990, set up the first ever Sipp in the UK.
Investment Sense marketing manager Phillip Bray says: “There has clearly been an increase in competition in the Sipp market and those who rest on their laurels will struggle to survive.”