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Dentons completes Sipp acquisition

Pension administrator Dentons has acquired MAB Pensions Sipp book for an undisclosed sum.

Dentons says the deal will add around 125 Sipp plans to its portfolio. The firm now administers over 4,000 Sipp and SSAS plans.

Dentons joint managing director Ian Stewart says: “We have made no secret that we are an acquisitive firm, but it has to be for the right business or Sipp book. We were pleased to be in discussions with MAB as it is a perfect fit for us being high quality and with the same underlying ethos of placing the client at the heart of everything we do.

Earlier this week, the FCA proposed new Sipp capital adequacy rules that were widely considered to have been less stringent than expected.

The new cap ad regime, which will come into force in September 2016, will mean the amount of capital a Sipp provider is required to hold in reserve will be based on assets under administration, with an additional capital surcharge based on the proportion of ‘non-standard assets’ each company has on its books.

Stewart says the acquisition will not have any “adverse implications” for the firm in terms of its capital position.

The regulator has also added UK commercial property to its list of “standard” assets, meaning Sipp firms will not have to pay a capital surcharge if they hold this asset.

However, the regulator says a firm should treat commercial property as a non-standard asset where it would take more than 30 days to complete a transfer. It will be up to individual firms to decide whether this is the case.

In the first half of this year 45 per cent of all new Dentons Sipps included commercial property within their portfolio.

Dentons director of sales and marketing David Fox says: “At a time of uncertainty for many providers, with the final capital adequacy rules now available and the changes announced in the 2014 budget this acquisition is a strong statement of intent by Dentons. It is our financial strength and reputation that makes us an ideal partner.”


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