Factors to consider include whether or not the new party provides the services and expertise required both now and in the future regarding investment and benefit needs.
• Is the new party expected to be a long-term player or will they themselves become a target for future acquisition?
• Does the new party have the capacity to integrate and administer the new book of business and is it a good match for their present business?
• Will new terms or fees be imposed that may be detrimental to existing clients?
A negative in any of the above areas might result in client dissatisfaction and a need to research and implement an alternative, more compatible provider.
Whether by accident or design, the actions taken by the regulator will result in the number of Sipp providers reducing significantly over the next three years. However, it is hoped that there will remain sufficient providers to continue to offer the consumer choice to invest freely, as was intended by the introduction of Sipps in 1989. But advisers must still assess operators for suitability for their clients.
Martin Tilley is director of technical services at Dentons Pension Management
