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Hornbuckle parent to acquire Rowanmoor

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Hornbuckle parent Embark is close to a takeover of rival Sipp provider Rowanmoor, Money Marketing understands.

It is understood Rowanmoor has been on the market for some time while Embark recently acquired failed platform Avalon.

Sipp firm consolidation has been expected ahead of the September deadline for the new capital adequacy rules which drastically increase the capital providers have to hold.

Rowanmoor only confirmed it had met the capital requirement towards the end of last month. It has two products, the Pensions Sipp which has £555m of assets and the Pensions Family Pension Trust with £455m.

In all, the Rowanmoor group has assets of nearly £4bn, the majority of which sit in its SSAS book. Likewise, Hornbuckle has around £4bn of assets and roughly 13,500 Sipp and SSAS clients.

Embark could not be reached for comment and Rowanmoor declined to comment.

Finalytiq founder Abraham Okusanya says: “It’s not a surprise that Rowanmoor is up for sale. Some of the issues around financial stability has been known for quite sometime. But Hornbuckle itself is going through its own challenges. It will be interesting to see how the combined business stacks up in terms of capital adequacy requirements.

“Advisers with clients in both businesses should expect that this will impact on service. Hornbuckle will have the huge responsibility of integrating a new business in addition to Avalon.”

Both firms were given ‘C’ ratings in Finalytiq’s recent report on the financial strength of Sipp firms.

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