Sipp firm founder's journey began with oil drum recycling

Curtis Banks’ £45 million deal to take over Suffolk Life earlier this year doubled the size of the firm. After Legal & General Group sold off the Sipp provider, Rupert Curtis, who helped set up Curtis Banks in 2009, said it was the perfect match.Sipps Professional talks to Mr Curtis about the development of his firm, how he started out in the sector originally and why he thinks the old cottage industry nature of Sipps is no longer attractive.Sipps Professional: What was your first ever job ?Rupert Curtis: Various summer jobs whilst at university. The lowlight was an oil drum recycling plant, most people lasted a day and I think I managed three days before deciding my health was more important!How did you first start out in financial services? Did you work in another area before this?Trainee Actuary at Sun Life Assurance in 1975, this was my first job after leaving university.What were your ambitions when you first formed Curtis Banks and how far have you got in realizing these?Building a successful service-driven SIPP business. It’s fair to say that we have succeeded well beyond our initial ambitions.What was the biggest challenge you faced personally and as a company since establishing it?I had never started a business from scratch before, so it was a new experience for me. The biggest challenges we faced as a business were the capital required to cover the losses in the early stages, and getting our name out there in a crowded market place. There were a few sleepless nights!What are your plans for expansion and how many more staff do you hope to employ over the next year?We expect to continue to see strong growth through acquisition and organically. This will increase staff levels, but numbers can’t be predicted as a lot will depend on acquisition activities, e.g. the Suffolk Life deal sees us taking on 250 extra staff.What action would you like to see the FCA take in the short and medium term to improve the Sipp and SSAS sector?Continue the good work they have done to clean up the SIPP industry and improve standards. A lot of progress has been made, but we are still surprised by what some SIPP operators seem prepared to accept.What, if any, changes or amendments would you like to see the FCA make in terms of the new capital adequacy rules?The rules should have taken into account the number of plans, not just assets under administration, but that battle looks to have been fought and lost, so we need to accept the rules as they stand and get on with it.What do you believe will be the most difficult aspects of enforcing the regulations will be from the FCA point of view? And what do you believe will be the most difficult aspects of meeting the requirements from a provider’s point of view?Possibly the same issue on both sides, there will be some providers which do not have the financial resources to meet the new requirements, but are not in a fit state to be sold or capable of raising more capital.How would you anticipate the sector evolving in the next year? Do you expect to see a lot of consolidation taking place?I am sure that consolidation will continue, and has some way to go yet. The sector will evolve towards a smaller number of well-run, financially strong operators. I think that’s what the FCA are looking for, and increasingly advisers are looking for it as well, the old cottage industry nature of SIPPs is losing its appeal.

Sipp firm founder's journey began with oil drum recycling

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