SIPP and small self-administered scheme (SSAS) provider Curtis Banks has said it is “proactively exploring” possible acquisitions with a view to adding scale to the business.
In its results published this morning (20 March), group chief executive Will Self said Curtis Banks was “committed to exploring further opportunities to add scale” to the business, and that it was “proactively” exploring possible acquisitions.
Last year saw Curtis Bank acquire Hargreave Hale’s SIPP book, which brought 578 SIPPs to the firm, invested in assets valued at around £180m.
This morning the firm also revealed its profit before tax had increased by 72% to £10.1m. The 2018 calendar year also saw the firm increase assets under administration (AUA) by 0.4% to £24.8bn, while the number of self-invested personal pensions (SIPPs) administered by the provider increased 9% to 77,739.
‘Taking limited remedial action’
Despite Cutis Banks’s growth, the group’s chief executive admitted no provider had been immune from the “well publicised challenges” facing the SIPP industry.
“The defined benefit [DB] transfer review has impacted all professional advisers, spanning both DB and defined contribution pension transfer advice,” Self said. “Liabilities arising from SIPPs holding non-standard assets have reduced confidence in the SIPP market, and the general economic environment has reduced consumers’ focus on pension savings.
“All of these factors have been felt across the industry, but we believe that our robust financial strength, quality of administration and our new proposition puts us at the forefront of the sector.”
The past 12 months has seen two high-profile court cases surrounding SIPPs and non-standard assets, as well as SIPP operators being blamed for an increase in the Financial Services Compensation Scheme levy.
Self said he did not consider the issues surrounding non-standard assets in SIPPs to be a “material concern to [the] business”. He also argued Curtis Banks had taken a “prudent” approach to its legacy book, and had undertaken a detailed review of the business.
Self claimed there were limited areas where “remedial action” needed to be taken, adding: “Commercial property remains a complex asset class and we are now undertaking a comprehensive data cleanse in this area.”