Sargisson: Falling value of SIPP firms will stall takeover deals

Rising regulatory costs are encouraging smaller SIPP providers to sell up to larger firms, Sargisson said, but warned the process will not be as smooth as expected. "Small providers are thinking ‘enough is enough' and attempting to cash in now," Sargisson said. "However, valuations will trip up the consolidation process. Firms will be valued at far less than people expect." Sargisson said rising Financial Services Authority (FSA) concerns about esoteric investments within SIPPs are forcing providers to spend more on due diligence. Planned increases to capital adequacy requiremen...