Consolidation of SIPP Providers
Posted: 07/07/2011 13:12:12 by
Global Administrator | with 0 comments
I was filling out a SIPP questionnaire recently for one of the industry publications, completing the same old quoted headline fees, product features and supplementary questions when one question stood out – what concerns do you have about SIPP consolidation?
Well, my initial thought was that this has been proposed for ages but in reality it hasn’t happened yet although recently we have probably seen the beginning of a move in this direction.
So what are the pressures?
- Legislation has limited future markets and the numbers of genuinely large cases will fall
- As a result, the 100+ SIPP Providers are scrabbling to maintain, let alone increase, their market share
- Cost cutting and special introductory offers are at unsustainable levels
- Proposed increases in capital adequacy are causing concern to many
This will all lead to deterioration in the level of service offered by some Providers. Dentons however continues to lead the way in providing exemplary client services.
We are already seeing the beginning of consolidation with Suffolk Life becoming part of Legal & General; this leads inevitably to a change in culture and to a tie in to technology used by the parent company. One or two other consolidations have taken place at the lower end of the market.
Will we end up with a few SIPP Providers offering packaged products rather than a personal service? Either way, Darwin’s principle of evolution will have to apply: only the strong will adapt and survive.
By Martin Tilley, Director of Sales & Marketing