View more on these topics

Sipp firm London & Colonial bought for £5.4m


Sipp firm London & Colonial has been acquired by financial services business STM Group for £5.4m.

The STM board says the acquisition will establish the company in the UK Sipp market and lead to £750,000 cost savings annually.

The acquisition is expected to complete in December and £3.3m of the deal is being funded by a new short-term credit facility.

London & Colonial’s UK Sipp business has around 2,000 members with turnover of approximately £1m.

Its Gibraltar-based insurance business has approximately 1,200 policyholders and generates net turnover of approximately £2m. The Gibraltar business also has approximately 300 qualifying recognised overseas pension schemes under management.

The FCA has approved the deal but it remains subject to approval from the Gibraltar Financial Services Commission.

An initial £4.13m will be paid on completion of the deal with up to £1.25m payable in three stages over the following 12 months.

STM chief executive Alan Kentish says: “Not only does the acquisition get STM a foothold into the UK Sipp market, it also brings with it a number of bolt-on consolidations in the QROPs and life assurance business.

“These will bring STM further economies of scale and will potentially free up regulatory capital in the medium term to fuel further growth.”

London & Colonial chairman Robin Ellison adds: “We recognise that STM’s enviable distribution network will allow London & Colonial’s businesses to flourish more quickly than could be achieved by the existing management and network.”

In the year to 30 September, London & Colonial reported audited revenues of £3.83m, a loss before tax of £70,000 and net assets of £4.8m.


Adam Wrench London & Colonial

London & Colonial eyes management buyout

Sipp firm London & Colonial is planning to launch a management buyout of the company, Money Marketing can reveal. Last year Money Marketing reported L&C had approached other Sipp providers about a possible sale, but it has since decided to raise new cash to fund an acquisition and buy out minority shareholders. Head of Product Adam […]


Peter Hamilton: When lying to insurers is allowed

About 18 months ago I wrote about how an insurance claim, valid in every respect, can be rejected if the insured has sought to embellish the facts with a lie in the course of making the claim. Such fraud has become known as a fraudulent device. I illustrated the point by reference to a Court […]


Spooked markets could fall ‘much further’ as FTSE slides

Investors have been warned that markets could have much further to fall if the current global sell off becomes a genuine correction, as the tone of US Federal Reserve members becomes increasingly hawkish. At lunchtime, before US markets had opened, the FTSE 100 was down 1.4 per cent to 6,679 having recovered some losses from opening, […]

What exactly is product innovation?

By Fiona Tait, Pensions Specialist Ros Altmann reportedly hoped for more product innovation following pension freedom¹ and, according to one poll, 66 per cent of advisers also believe that providers should be doing more². This article considers whether there is a real client need for new products, or whether we should be focusing our attention on efficient delivery […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm