Ten due diligence hurdles your SIPP provider must clear

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Advisers need to be sure they are entrusting their clients' SIPP funds to the right partners. Andy Leggett says there are some important questions to ask and there need to be convincing, evidenced reasons before any boxes are ticked.

Financially sound? This means strong, not big. Capital adequacy requirements are expected to be moved on to a consistent basis across providers and may rise for all. Does the provider have access to sources of funding? Profitable? A durable proposition is a profitable one. Can the provider demonstrate consistent profitability over a number of years? Is their positive cash-flow? Can they afford to continue investing in technology? Committed? Is the provider posting steady growth figures for number of plans currently administered and assets under administration? Poor growth could ...

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