SIPPs: Dentons buys RSM’s Bespoke SIPP book


B handThe specialist self-invested pension provider, Dentons, has announced it has agreed to buy RSM Tenon Pension Trustees for an undisclosed sum.

The deal follows hot on the heels of Suffolk Life acquiring a number of SIPPs (Self-Invested Personal Pensions) from Pointon York and Curtis Banks buying the bespoke SIPP arm of Alliance Trust.

Large expansion

Dentons are a leading provider of self-invested pensions and have been trading since the 1970’s, specialising in SIPPs since 1996.

The deal will see the company add 650 SIPPs to their existing portfolio, which is managed by nearly 60 staff.

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The acquisition comes following a rebrand in 2012, a year when Dentons saw new business increase by 28%.

Commenting on the deal, Martyn Rose, Chairman, Dentons said: “We have made no secret that we are acquisitive, but it has to be for the right businesses or books of SIPPs. We are therefore very happy with the acquisition as it is a perfect fit for us being high quality and with the same underlying ethos of placing the client at the heart of everything we do. We are committed to the SIPP and SSAS market and despite the current market uncertainty over capital adequacy we are a strong and well capitalised business and an active consolidator.”

David Fox, Director of Sales and Marketing, Dentons said: “At a time of uncertainty for many providers this acquisition is a strong statement of intent by Dentons. We believe it is our financial strength and reputation that makes us an ideal partner. We are looking forward to building strong strategic relationship with RSM Tenon and their advisers. This acquisition is also evidence that consolidation is continuing in the SIPP market, ahead of the final capital adequacy rules.”

SIPP consolidation

The acquisition of RSM Tenon Pension Trustees is the third major deal over the past few months and many industry experts believe that more will follow as 2013 unfolds.

Much of the merger and acquisition activity is being driven by the FSA’s capital adequacy proposals, which will see most SIPP providers having to increase their reserves; something many will find unworkable and will therefore look to exit the market.

Only time will tell how many SIPP providers will be left by the end of the year, one thing is for certain though, today’s deal won’t be the last of 2013.