Pearson Jones winds up two pension schemes

A North East wealth management company is winding up two pension schemes and selling individual plans to another provider.

Bishop Auckland-based Pearson Jones plc is winding up its Self Invest Personal Pension schemes (SIPPS.)

Pearson Jones, one of the region’s largest wealth management companies, is also selling the individual plans to Suffolk Life, Ipswitch.

The administration of more than 280 SIPPS in two schemes, The SKPJ SIPP and The NET SIPP is being sold to Suffolk Life, part of the Legal & General Group for an undisclosed sum.

Pearson Jones Plc, who launched its SIPP schemes in 2004, will maintain its central role as financial adviser to all of the schemes.

All company staff involved in the schemes’ administration are being deployed elsewhere in the business as its national wealth management portfolio continues to expand.

The deal with Suffolk Life follows its acquisition of about 1,700 plans following a decision by SIPPS provider Pointon York, Market Harborough, to close one of its schemes last November.

Pearson Jones’ winding up of the schemes and subsequent sales follow recent UK regulatory changes which have significantly increased the cost of administering pensions schemes, triggering other small UK SIPP providers to wind up their schemes and sell on the administration.

Peter Heckingbottom, deputy managing director at Pearson Jones said: “Our core role as financial advisers represents 95 per cent of our turnover.

“SIPP administration is a specialist ancillary function and, as a small administration operator, the new regulatory burden would mean that we would need to charge clients far more than the market rate if we were to continue and so we have decided to exit.

“This sale also means that Suffolk Life clients will be able to view their portfolios online, a feature which has been requested but which we have been unable to deliver.

“All the administrative work associated with the transfer is being handled by the new scheme providers at no cost to the clients.

“This is a deal which, thanks to a mutual focus on the investors’ needs, works out best for all those involved.”

Pearson Jones Plc also has offices in Leeds, Sheffield, Reading and York and currently employs 123 staff.

Suffolk Life managing director, David Hobbs, said: “This acquisition from Pearson Jones plc underlines our commitment to the self invested pensions market.

“The SIPPS from both schemes fit well across our whole proposition and, in many cases, investors will find that their annual SIPP administration fees will now be lower.”

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