Mattioli Woods has been identified as a top three SIPP provider in terms of stability by independent research consultancy Finalytiq in its first review of the sustainability of the bespoke SIPP market.
The review comes ahead of the impending changes in the SIPP market, where in September 2016 the regulator, the Financial Conduct Authority (FCA), will introduce a number of changes to the existing rules. These will have a significant impact on SIPP providers, especially those that have focused heavily on the non-standard market, and have a high number of clients in that category.
The FCA has highlighted inadequate risk processes, poor quality management information, an increase in the number of non-standard investments held by some operators, and inadequate due diligence being undertaken for introducers and investments. Therefore, the new rules with the enhancement of capital resources are aimed at providing better outcomes and protection for clients.
Mark Smith, Operations Director, commented:
“We have been highlighting the importance of SIPP providers ensuring they are well capitalised, ever since they have been regulated by the FCA back in 2007, and it is great to see that our financial strength in this market is recognised.
“We are one of only three firms categorised as an “A grade” firm. There are a number of well-known names that haven’t fared so well giving our clients and our introducers comfort that their pension scheme assets are administered by a financially secure business, something we are immensely proud of.”
Although Mattioli Woods is in a strong position and ready to meet the forthcoming changes, many are not, and lower cost providers will need to increase scheme fees and the SIPP market is likely to see further consolidation.
Over the past few years, Mattioli Woods has been appointed to administer a number of failing SIPP schemes, following the failure of previous operators. Its technical expertise and reputation in the SIPP market has driven this opportunity. With each of these schemes, it has been paramount to ensure the members caught up in a scheme’s problems were properly advised to bring their affairs back on track as soon as possible.