Intelligent Money is considering exiting the Sipp market to become an independent provider of standard personal pension plans.
The company says it is looking at re-branding its Sipps as flexible personal pensions to better reflect its position in the market.
The firm is in discussions with advisers about the potential change and says the shift has been prompted by recent high-profile Sipp firm failures.
In January, the Financial Services Compensation Scheme declared Sipp operators Stadia Trustees, Brooklands Trustees and Montpelier Pension Administration Services in default.
The Lifetime Sipp Company also went into administration in April.
Intelligent Money chief executive Julian Penniston-Hill says these issues stem from some Sipp providers accepting non-standard assets and working with unregulated introducers.
He adds Intelligent Money has never really been a full Sipp provider as it has only allowed standard investments and never accepted business from non-regulated introducers or the public directly.
Penniston-Hill adds: “We recognise advisers don’t want the reputational – and indeed real – risks of having clients placed with Sipp providers that may face serious financial difficulties due to very unwise decisions on the type of business they have accepted.
“By switching to standard personal pension plans, with all of the good Sipp functionality yet none of the bad, we feel that this clearly separates us from the activities of certain other Sipp providers.”
He continues: “Our Isas, investment portfolios and group pensions are not affected by this change. We are simply aligning ourselves to the correct product name for our personal pensions.”