Pension provider Embark Group has bought Liberty Sipp’s client book for an undisclosed sum.
Embark has not acquired the actual Liberty Sipp company, which is set to be wound up as part of the deal.
Embark says it will help the orderly wind-up of the business once the acquisition is completed.
The transferring Liberty Sipp products will be re-branded and operated by Embark’s subsidiary EBS, which will receive a £2m injection of regulatory capital to run the Sipps.
The new business will be headquartered within the Embark Group in Greater Manchester, with a satellite operation in London.
Embark chief executive Phil Smith says the transaction provides protection for the consumer clients of Liberty and is positive for the employees of both businesses.
The deal provides a degree of certainty for Liberty Sipp which has faced pressure from solicitors Anthony Philip James & Co over misselling allegations.
APJ allege Liberty Sipp failed to treat customers fairly by accepting a high volume of clients who were unsuitable for Sipp investments from an unregulated introducer.
Liberty Sipp managing director Jon Fox says: “The timing and cultural fit of this transaction is excellent for all of us at Liberty. We are moving from being one of the fastest growing small players in the Sipp market, to driving the continued growth of one of the largest sector players.”
Last week Aim listed pensions provider STM Group said it agreed to pay up to £400,000 to buy a majority stake in embattled Sipp provider Carey Pensions.
Sipp providers are waiting for two court cases to clarify their duties in relation to unregulated investments.