{"id":344,"date":"2016-05-31T11:17:53","date_gmt":"2016-05-31T11:17:53","guid":{"rendered":"http:\/\/atsipp-new.sbp-creative-dev.co.uk\/?p=344"},"modified":"2016-12-16T10:55:06","modified_gmt":"2016-12-16T10:55:06","slug":"atsipp-statement-capitaladequacy-duediligence","status":"publish","type":"post","link":"https:\/\/atsipp.co.uk\/atsipp-statement-capitaladequacy-duediligence\/","title":{"rendered":"@sipp Statement on Capital Adequacy and Due Diligence"},"content":{"rendered":"

Capital Adequacy Position<\/strong><\/p>\n

As we enter the lead up to September 2016, advisers are, quite rightly, increasing their focus on the capital position of their provider partners.<\/p>\n

Consequently, we are pleased to confirm that @sipp currently hold capital in excess of the new FCA requirement<\/strong>. The additional capital required between the current and new requirements has been secured by out existing shareholders with no external financing required. As at 31 March 2016, we held capital and reserves of \u00a3567,000 – some 30% above our current capital threshold.<\/strong> In common with our longstanding operating practice, we expect to maintain a margin comfortably above our regulatory capital threshold moving forward.<\/strong><\/p>\n

The strategy of the business over recent years has been to provide a strong platform for future growth via investment in our people and infrastructure. This is evidenced by such as the doubling of our staff numbers over the last 3 years, our recent senior management hires and move to new premises – which provide capacity to again double our staffing levels. We shall also be launching a new brand identity and website later this year. During this investment phase, the business has continued to increase its capital and reserves by over 30%, whilst remaining profitable.<\/p>\n

The firm aims to grow both organically and via acquisition where such a deal provides complementary services and\/or additional distribution capabilities. We are pleased to confirm that we shall imminently be in a position to confirm full details of such an acquisition.<\/p>\n

@sipp trust the above reinforces the fact that they are well-capitalised, profitable business – and expect to deliver a double digit profit margin before tax for the 2016\/17 company year.<\/p>\n

Due Diligence – Time for some perspective…<\/strong><\/p>\n

Of course, Capital Adequacy, is only one component of an advisors due diligence process. Advisor based research from AKG Actuaries and Consultants in 2015 placed this as the 5th most important factor to advisers – unsurprisingly behind factors such as service quality and technical support. The strength of a provider’s overall proposition will continue to be key… with some difficult questions to be asked including…<\/p>\n