Sipp provider Curtis Banks has addressed problems that have beset the industry such as non-standard assets, but says it has had no problems itself with issues relating to underlying investments.
In its financial results for the year ending 31 December 2018 Curtis Banks, which has for the past year been bedding in its acquisition of rival bespoke Sipp provider Suffolk Life, said ‘no provider has been immune’ to the ‘challenges’ posed by non-standard investments, as well as defined benefit transfer activities, that have found their way into Sipp books.
It said while ‘we acknowledge that these issues are significant within the wider industry, and that some uncertainty still persists, we do not consider them to be a material risk to our business.’
The provider said it had carried out a past business review on legacy issues related to commercial property.
‘We have also taken a prudent approach to our legacy book, composed of our own Sipps as well as a large number of historic acquisitions, and have undertaken a detailed review of this business. There are areas where we will need to take remedial action but these are limited.’
It said it continues to carry out ‘robust due diligence on non-standard investments’ adding that its new product has a ‘schedule of allowable investments’.
Over the last year the provider increased adjusted profit before tax by 13% to £12.1 million (2017: £10.7 million).
Gross organic growth in own Sipp numbers of 9% with total administered now 77,739. Assets under administration remained almost the same, £24.7 billion to £24.8 billion
Curtis Banks reports gross organic growth rate. This year it was 7.72% but last year that figure was 12.05%.
Will Self, chief executive of Curtis Banks, said: ‘we are now well-placed to increase our organic growth of full and mid Sipps over the next full reporting period. We are also well positioned to grow the business inorganically and are proactively exploring possible acquisitions.’