Suffolk Life has acquired the Sipp business of wealth management firm Pearson Jones for an undisclosed sum.
The deal will see around 280 Sipp plans transfer from Pearson Jones to Suffolk Life, following Pearson Jones’ decision to wind up its Skipton (Pearson Jones) Sipp and the NET Sipp.
Suffolk Life has funded the acquisition through its own retained profits rather than through parent company Legal & General.
Pearson Jones will continue to advise scheme investors.
Suffolk Life managing director David Hobbs says: “The acquisition of the Sipp book from Pearson Jones underlines our commitment to grow our business both organically and through the right acquisitions.
“We are looking forward to extending the Suffolk Life proposition and service to the Pearson Jones advisers and their clients, offering them some features which we know they have wanted for a while, such as online access to their portfolios via our online portal.”
Pearson Jones Leeds deputy managing director Peter Heckingbottom says: “Our core role as financial advisers represents 95 per cent of our turnover. Sipp administration is a specialist ancillary function and, as a small administration operator, the new regulatory burden would mean we would need to charge clients far more than the market rate if we were to continue and so we have decided to exit.
“Pearson Jones and Suffolk Life have worked hard to ensure none of its clients are disadvantaged by the business transfer and that they will continue to benefit from top-class wealth management advice.”
In November Suffolk Life acquired Pointon York’s The PY Sipp which closed to new business in 2009.
The company’s latest acquisition comes ahead of moves by the regulator to increase Sipp provider capital adequacy requirements.
The FSA published a series of proposed changes to Sipp capital requirements in November, including plans to link a firm’s capital requirements to assets under administration rather than expenditure.