Regulatory change could lead to another surge in M&A in the SIPP market despite the number of Planners advising on them falling, according to Financial Planners.

The latest edition of Financial Planning Today Magazine takes an in-depth look at the SIPPs market.

According to Financial Planning Today’s latest reader survey, the number of Planners advising on SIPP and SSAS business is falling.

In the survey, carried out just  under a year ago, over half (54%) of readers offered SIPPs and SSAS advice in comparison with 62% who transacted SIPP and SSAS business in 2021 and 71% in 2020.

However, M&A activity among SIPP providers remains high with consolidation one factor and some weaker or failed firms being taken over as well as more successful firms attracting takeover interest.

Graeme Bone, Chartered Financial Planner and CEO of Beaufort Financial Pathfinder, said he expected regulatory change to lead to a further increase in M&A among SIPP and SSAS providers.

He said: “The level of perceived and perhaps actual risk is now significantly higher for more specialist SIPP and SSAS providers, however, not all providers or consumers are building this into their price expectations or business models. Some providers are better placed than others to cope with new regulatory regimes (such as the Consumer Duty). More deals are likely.

“Large consolidators will look to branch out into the more specialist areas as they all seek to increase market share. Coupled with technology and client service improvements, consumers will ultimately get the best of all worlds - especially as planning in this area becomes more complex and therefore can add more value.”

In the feature we look at the drivers behind M&A activity in the SIPP market, the effect firm failures have had on the market, if Consumer Duty could lead to more firm failures and the unintended consequences of Chancellor Jeremy Hunt’s Spring Budget.

The latest issue of Financial Planning Today Magazine is now available and includes an in-depth report on the challenges and opportunities facing the SIPP market.

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