Xafinity SIPP grows but warns sector is standing on a 'precipice'

Xafinity SIPP Services has reported strong annual growth with assets under administration hitting £2bn but warns that the SIPPs sector is standing on a “precipice.” A number of court cases against SIPP providers and increased interested in SIPPs from “ambulance chasers” has dented confidence in the SIPP sector.Despite this, Xafinity SIPPs - part of the XPS Pensions Group plc - says its strategy of concentrating on steady growth and financial stability should help it maintain momentum despite the challenges ahead.Andy Bowsher, director of Self Invested Pensions at Xafinity SIPP/SSAS, added: “The SIPP industry is currently on a precipice awaiting the verdict of ongoing legal cases which have the ability to cause more financial instability and the potential to change the SIPP market place. “For many years we have shown steady and consistent growth, avoiding the hit or miss ‘growth at all costs’ path. We have a strong business underpinned by some superb people.""While our full SIPP product remains central to our offering, the continued growth of our SimplySIPP product encourages us to increase investment in this space, particularly in technology where new online features are on their way.”Turnover increased by 9% from £4.96m to £5.42m and pre tax profit increased by 36% to £1.54m.The company says other key milestones include:•Over 1,000 financial advisers have clients with a Xafinity SIPP or SSAS•The average SIPP value is now £271k an increase from £252k in the previous year•Xafinity SIPP/SSAS administer over 1,850 commercial properties on behalf of clients•The firm has 70 staff specialising in SIPP and SSAS administrationJeff Steedman, head of business development at Xafinity SIPP/SSAS, said: “Having no direct to consumer presence means our business is completely dedicated to supporting financial advisers and their clients. It is therefore pleasing to see that we have reached the milestone of 1000 financial advisers who trust their SIPP and SSAS business to us."• 75% of 450 pension scheme trustees - representing over 7m pension scheme members - attending an XPS Pension Group conference agreed that partial pension transfers should be offered to members.

Xafinity SIPP grows but warns sector is standing on a 'precipice'

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