James Hay plans to expand its presence among large distribution firms and expects to eventually become one of only five large players in the Sipp administration market.
In an interview published in this week’s Money Marketing, Mark Bourke, chief executive of James Hay’s parent company IFG, says the Sipp administrator wants to boost the number of distributors who use its products.
He says: “We have got ourselves to the starting blocks with our products but now we need to build relationships with the big potential distributors.
“Of the top 200 distributors we have about 8 per cent, but if we were punching our weight we would have about 25 per cent, so there is plenty of opportunity for us to expand our presence in this market.”
Bourke says FCA plans to increase the capital Sipp administrators need to hold will make it impossible for all but the largest firms to operate in the market.
He says: “The regulator’s focus on this industry is absolutely huge and if you are not a scale player you simply cannot build the infrastructure or the systems and controls to service the market.
“Usually you would expect to end up with between two and five large players once a process like this is completed and we want to be one of those players.”