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Largest five Sipp providers dominate 40% of advised sales

Data released by the FCA shows that the largest five Sipp providers dominate more than 90 per cent of the non-advised market and two-fifths of advised sales.

Figures for the third quarter of 2016 show that, of the 98,012 non-advised Sipp sales recorded by the regulator, the top five Sipp providers were responsible for 95 per cent of these, and the top ten were responsible for 99 per cent.

For the 28,537 advised Sipp sales in the third quarter, 40 per cent were carried out by the largest five providers, and 62 per cent were carried out by the largest 10.

While the number of Sipp providers in the market fell from 165 to 118 over 2015, numbers have now ticked back up.

In the fourth quarter of 2015, there were 118, rising to 137 and then 143 though the first and second quarters of 2016, before falling back to 130 in the third quarter.

In the third quarter of 2016, 74 providers conducted advised sales and 56 conducted non-advised sales.

Consolidation in the Sipp market was widely predicted in the run-up to new capital adequacy requirements that were introduced in September last year.

Dentons director of technical services Martin Tilley says: “Where consolidation has occurred and probably will continue is at the more bespoke end of the market. Those firms that, in addition to all the standard assets that can be held by the platform Sipps can hold assets in non-standard and other assets such as directly held commercial property, unlisted shares, loans to third parties etc. These tend to be significantly fewer in number but the average values tend to be higher.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. This is the data released last November but is, sadly, misleading. It’s also inconsistent with data previously provided by the FCA. I queried it with them at the time, but they’ve not yet responded. I’ll be posting a blog in due course when the stats are resolved.

  2. As I am completely rubbish at guessing………………..can anybody shed some light on who the top five are? Or is the fact that they also represent 90% of the non-advised market something they want to conceal from advisers?

  3. “Figures for the third quarter of 2016 show that, of the 98,012 non-advised Sipp sales recorded by the regulator, the top five Sipp providers were responsible for 95 per cent of these, and the top ten were responsible for 99 per cent.”

    These stats alone are a massive cause for concern given recent news from FSCS etc regarding inappropriate investments within SIPPs unless HL is in #1, #2, #3 position!

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