Praemium partners to acquire UK pension provider

praemium/pensions/Australian-finance/

9 September 2016
| By Malavika |
image
image
expand image

Investment platform provider, Praemium, has entered into an agreement to acquire England-based self-invested personal pension (SIPP) provider, Wensley Mackay.

The $1.04 million (£600,000) deal in cash would be subject to satisfactory fulfilment of the conditions specified in the agreement, including approval by, UK regulatory, the Financial Conduct Authority.

The transaction was expected to be earnings accretive in the first year, Praemium said in a statement to the Australian Securities Exchange (ASX).

While Praemium currently ran its discretionary investment platform in the UK using the company's proprietary separately managed account (SMA) technology, the firm said two-thirds of UK's household wealth came from private pension savings, with over one million SIPP schemes.

Praemium would now have access to a new source of funds under administration (FUA) through its existing adviser relationships.

Praemium chief executive, Michael Ohanessian, said: "In the UK, platform providers have seen the retirement market open up following pension reforms introduced in April 2015 that de-mandated the use of annuity investments. Investors are exiting annuities and seeking other options for their retirement savings, with a major shift to pension schemes like SIPPs that offer a wide range of option".

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 3 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months 3 weeks ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

1 week 3 days ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 2 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND