Our response to FinalytiQ analysis
We are aware that an industry-wide report has been published on the financial stability of SIPP providers in which we are mentioned. We were asked to provide a range of commercially sensitive information to the survey operator through which would in turn generate revenue/profit from across the adviser community. We saw no need to do so as we operate an open due diligence policy with this community already, and as such we declined participation.
We believe this to be the case for many of the firms mentioned.
In our opinion the rating attached to our business is fundamentally flawed and has been derived without any access to the information required to make such a judgement, particularly in regard to regulatory capital requirements and the investment profile of our recent activities.
We have been fully supportive of the new capital requirements since the first FCA consultation, and indeed have pushed for higher benchmarks. We have a publicly stated policy of maintaining capital reserves at 140% of the regulatory minimum and we hold more than adequate capital strength under the new rules. The business and its shareholders see no reason to alter this position.
In recent years we have been investing heavily in new technology, process and people to ensure we build a quality business built for the long-term. This is a clear demonstration of our financial strength and appetite to compete for the long-term in this market.
It remains our viewpoint that while it is appropriate that advisers can perform due diligence on the providers they recommend for their clients, this report does little to inform advisers’ decision making process and we recommend they talk directly to providers like ourselves.
Board of Directors
16 May 2016