National IFA Mattioli Woods says its withdrawal from the defined benefit transfer market is not “expected to be material” on the group’s bottom line.
Results published today show revenue increased from £50.5m to £58.7m, up 16.2 per cent, for the year ended 31 May.
New business was generated by the firm’s consultancy team, with over 1,300 new Sipps, SSAS and personal clients choosing Mattioli Woods during the year.
Pension transfer advice to individuals contributed approximately 1.6 per cent of direct revenues over the year, Mattioli says, as it confirms that it will quit the market for good.
The wealth manager stopped advising on transfers in July and says it has no plans to re-enter the market as mounting professional indemnity insurance costs make it less profitable.
Total client assets under management, administration and advice increased by over 10 per cent to £8.73bn, up from £7.93bn last year.
Mattioli Woods chief executive Ian Mattioli says: “Over the past three years we have advised 660 clients to transfer out of their final salary schemes. But the fall in transfer values, intense political scrutiny and increasing compliance has led us to pull out of the market.
“It is no longer right for us. I am surprised by the number of firms still in the market but I guess a larger chunk of their business comes from transfers.”
He adds: “Last month we announced the acquisition of Broughtons Financial Planning, which has a similar culture to Mattioli Woods and gives us new opportunities to grow and develop the client offering of the combined business.
“With increasing complexity and continuing consolidation across the key markets in which we operate, we expect there will be further opportunities to accelerate our growth by acquisition.”