James Hay has reported a small drop in Sipps under administration as attrition levels continue to cancel out new business sales.
The Sipp and SSAS provider’s parent company, IFG Group, today revealed the total number of Sipps under administration at James Hay fell from 38,289 at the end of December 2011 to 37,956 at the end of April.
Sales of new Sipps in the first four months of the year were 756. However, James Hay’s legacy book has a relatively old client profile and as a result it expects to lose around 10 per cent of existing Sipp customers per year, with some buying an annuity and others dying.
IFG’s interim management statement says: “Through a combination of the above new business and attrition levels, the total number of Sipps under administration was 37,956 at end April, just marginally lower than the 38,289 administered at end December 2011.
“Given the planned attrition levels, this is a positive development and augers well for the cross-over point when new business exceeds attrition.”
Meanwhile, IFG says its UK-based IFA business Saunderson House has won 43 new clients this year.