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Capital adequacy and all that


SIPP capital adequacy is in the news again, with news from one of our competitors that they are holding a whopping 4 times the FSA requirement. Well yes they are, but you'll have spotted from one of my earlier blogs that 2 otherwise identical SIPP providers can have different capital requirements of 6 weeks or 13 weeks expenditure, depending on how they hold client money.

The 4 times is actually 4 times 6 weeks, though fair enough the article did say that and even if it's actually around 2 times at the 13 week level, that's no mean achievement and roughly where we are ourselves at the moment.  Any SIPP provider with the capability to increase its capital is in a good position at the present time, again you'll have noticed from my earlier blogs that the FSA are likely to be pushing for higher limits and the real worry is those providers not in a position to be able to do this. It's noticeable that capital levels have become a standard question in the due diligence questionnaires we receive these days.

All of this is making me think that maybe we aren't blowing our own trumpet enough. We have been trading for a little over 3 years now, so it's time for an update. Here's a few highlights:

  • Profits for the calendar year 2012 will be significantly above the 2011 figure
  • We are fast approaching 5000 SIPPs and SSASs under our administration, so comfortably a top 10 full SIPP/SSAS provider.
  • The team has grown to 45 people with recruitment covering all areas of the business. This means we now have nationwide coverage at business development level in terms of supporting our introducers.
  • We remain self owned at board level with no external debt.
  • Organic growth in the last calendar year of approximately 1400 SIPP clients.

Looking forward we firmly believe that all signs point to a reduction in the number of SIPP providers and we feel well placed to grow again via acquisition in addition to our continuing strong level of organic growth. We remain committed to providing a first class SIPP product and appreciate the support from our introducer relationships and the feedback they provide which helps shape our products and services going forward.

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