The Financial Services Authority's (FSA) plan to raise the amount of capital self-invested personal pension (SIPP) providers have to hold will spur further consolidation in the market, the chairman of Mattioli Woods has said.
Bob Woods of the specialist pensions consultancy and wealth management business said such an environment would present buying opportunities for the firm.
"I believe the significant increases some SIPP operators would see in their regulatory capital requirement under the FSA's proposals would drive further consolidation in the market, presenting us with new acquisition opportunities," he said in a stock exchange announcement today.
The FSA is consulting on hiking SIPP providers' capital adequacy levels from a minimum of £5,000 to £20,000.
It also wants to take the provider's assets under administration and the amount of non-standard assets held into account when determining capital adequacy levels.
It said the minimum needed to be raised because "experience has shown the cost of winding down an operator is unlikely to be less than this amount", it said.
Mattioli Woods will be announcing its interim results for the six months ending 30 November 2012 on 29 January 2013.
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