A Berkshire based wealth management company, Pearson Jones, has terminated two pension schemes, affecting hundreds of UK investors and the individual plans sold to another provider.
Hare Hatch based Pearson Jones Plc is winding up its self invest personal pension schemes (SIPPS) and selling the individual plans to give a better deal to its clients.
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The two schemes SKPJ SIPP and The NET SIPP with administration of more than 280 SIPPS is being sold to Suffolk Life, Ipswich, part of the Legal & General Group, for an undisclosed price.
Pearson Jones will remain in its central role as financial adviser to all of the schemes and all its administration staff will be deployed elsewhere in the business as its national wealth management portfolio continues to expand.
Winding up the schemes and their subsequent sales follow recent UK regulatory changes which have significantly increased the cost of administering pension schemes thus triggering other small UK SIPP providers to wind up their schemes and sell on the administration.
Pearson Jones deputy managing director, Peter Heckingbottom, said: "Our core role as financial advisers represents 95% 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."
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By GlobalData
