Advisers unconcerned by capital adequacy ruling for Sipp providers

Financial advisers and providers are divided between the most important factors for choosing a Sipp firm. According to Dentons Pension Management, advisers are unconcerned by the new rulings on capital adequacy for Sipp providers.When asked to rank the most important priorities, provider profitability and financial strength as of low importance to advisers.This contrasts to providers' concerns over capital adequacy rulings which will see firms required to hold much higher amount of capital. It may also lead to smaller firms closing or being acquired by larger providers.{desktop}{/desktop}{mobile}{/mobile}The most important requirements for advisers were the provider's fee schedule and permitted investments. These were followed by significance of service proposition, key staff and options on retirement.For Sipp providers, most important was the service proposition followed by profitability and turnover and financial strength.Martin Tilley, director of technical services at Denton, said: "This snapshot of the industry reflects our own views that IFAs may have not yet grasped the importance of capital adequacy review and how it will have an impact on the Sipp market going forward."We expect to see further consolidation in the Sipp provider market and it is therefore vital for advisers to consider financial strength when choosing a provider to ensure they are still there in 5-10 years time."

Advisers unconcerned by capital adequacy ruling for Sipp providers

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