FOCUS 116 – BULK TRANSFERS

For the last 18 months we have seen a significant increase in enquiries from advisers looking to transfer existing SIPP business to ourselves. The type of SIPP tends to be property or direct investment based. These enquiries, which are more often than not client led, are mainly cost and service driven.

With certain providers taking days if not weeks to respond to basic enquiries  and spiralling costs extending way beyond the headline, basic fee, Advisers are having to spend increasing amounts of non-chargeable time managing these cases and fire fighting.

The main reasons behind this growing trend seem to be:

  • Changes in Business Model and Direction – Many larger providers are now focusing on platform driven models and no longer see property or directly held investment strategies as core business.
  • Unsustainable Growth – This has manifested in two forms. Firstly, the consolidation within the SIPP industry over the last 2/3 years. This has led to some firms operating a variety of administrative systems from different departments in locations throughout the UK. This, together with staff cuts and losses, has led to confusion amongst clients and advisers alike. Secondly, in an attempt to increase market share in the short term, certain firms have deeply discounted prices to a point where their SIPP offering is a loss leader and the pressure is on to sell large volumes in order to sustain the business model.  We have witnessed staffing levels and systems simply not keeping pace with growth and,in turn, this leads to a drop off in service levels and an unsustainable business in the medium term.
  • Unsuitable/Toxic Assets – It is well documented that certain providers have previously opened their doors to this type of investment. What is overlooked is that providers with large exposure to this type of business are facing  a significant administrative and cost burden to manage this issue.  With SFO enquiries, claim management companies becoming mobilised and FCA interest heightening, the reputational damage brought about by this short term drive for scheme numbers is coming back to haunt and possibly cripple some high profile providers. Unfortunately, as is ever the case, clients and advisers who have not entertained this type of investment but have schemes with these firms will bear a cost both financially and with ongoing service.

Talbot and Muir throughout its 25 year history has always maintained strong and sustainable growth. We have avoided the temptations of short term, “get rich quick” business models concentrating on long term, service driven models. This is demonstrated by our year on year profitability and the fact that our Capital Adequacy requirements have always been met by Tier 1 funding.

In response to this rise in enquiries for a transfer we are now offering:

  • Transfer Assist service for the next 3 months.
  • Free Price comparison service fully detailing services provided with complete transparency.
  • Discounted Property and In Specie transfer fees for the transfer of assets.
  • Reduced legal fees for conveyancing work.

If you would like to discuss the transfer of a book of business, please contact us and we will be delighted to help:

Business Development Team

  • David Bonneywell Midlands/East 07771 986 539
  • Michael Hurley London 07826 067 563
  • James Cannon North West 07539 121 220
  • Gemma Fenton Wales/South West 07940 254 064