Large-scale SIPP provider mergers are likely throughout this year as many will not have the assets required if capital adequacy requirements are increased, according to Suffolk Life.
The provider believes this is most likely to affect those dealing with more complex investments and those who do not solely administer SIPPs. Product and marketing director Chris Jones said those likely to weather the storm are: "The specialist providers that have the financial strength, robust systems and strong corporate governance infrastructure demanded in today's market are both best placed and most interested in this sector." Currently most SIPP providers have enough capital to finance their business for six weeks, which the FSA has suggested increasing to two years based on the ...
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