In a surprise move, the Essex based SIPP provider, Stadia, has stopped taking new SIPP (Self-Invested Personal Pension) applications.
Following recent changes introduced by the FSA, particularly in relation to capital adequacy, many experts have predicted that the SIPP market will change beyond all recognition in 2013, with a number of closers and mergers expected.
The announcement by Stadia is perhaps the first of these expected changes.
A notice on the Financial Services Authority’s website says: “Stadia will cease to accept all new business from new and/or existing clients for which it has Part IV permission with immediate effect. New business is deemed to be any business that is not already contracted with the client prior to this variation taking effect.”
The notice continues: “Stadia may only hold or control client money and assets in respect of personal pension scheme(s) that the firm operates.”
Speaking to Citywire, Tony Hales, Managing Director of Stadia, said that the firm would cease taking new applications whilst it undergoes “structural changes”.
The move is thought to be a result of the large amount of unregulated and overseas investments held within Stadia’s SIPPs. The recent FSA proposals on capital adequacy for SIPP providers proposes a link between the amount of capital which must be held and the level of ‘non-standard’ assets, including unregulated investments and overseas property. For those SIPP providers who have a large exposure to ‘non-standard’ investments, this will lead to an increase in the amount of capital they will need to hold and could force some SIPP providers out of business or to merge their operation with a competitor.
Stadia was also thought to be one of eight small SIPP providers visited by the FSA in 2011 as part of an exercise to assess the risks of unregulated investments within SIPPs.
If you are a Stadia client and are concerned by the move our team of SIPP experts are experienced in advising SIPP investors on their options.
If you have a SIPP with Stadia and would like advice on your options call one of our IFAs today on 0115 933 8433, alternatively enquire online or email firstname.lastname@example.org