The Ssas space is likely to see further consolidation next year, especially if legislative change means small providers find it difficult to cope.
Martin Tilley, director at WBR Group, said the Ssas firm was looking to buy “complementary businesses” next year as long as they align with the business’s “core expertise” in Ssas administration and tax.
It comes after this year the firm rebranded to WBR Group following the completion of its acquisition of Rowanmoor Executive Pensions’ book of 3,500 Ssas.
This was the second major acquisition by WBR following the purchase of the James Hay Ssas book in 2021.
Tilley said: “This rebranding wasn’t merely cosmetic; it signalled a strategic shift and better represents the wider organisation that delivers excellent outcomes for business owners, SMEs, entrepreneurs and families through an extensive range of actuarial, property, tax and Ssas services.”
Others in the industry expect there will be more consolidation next year.
Stephen McPhillips, technical sales director at Dentons Pension Management, said: "The pace and extent of legislative change might accelerate that consolidation activity, as smaller providers struggle to cope if they lack scale and financial resources.
“Those providers who own, maintain and develop their own bespoke IT systems, who are profitable and cash-generative and who have strong balance sheets are likely to be best-placed to tackle the challenges head on and thrive in a contracting market.”
But he warned consolidating “for the sake of it” - which takes place regardless of the quality of the book/business being acquired – was a "potential recipe for disaster in both Sipp and Ssas markets”.
“Perhaps reckless consolidation could be reasonably defined as ‘foreseeable harm’?”
Nathan Bridgeman, director at SeaBridge Ssas, was also wary of further consolidation in the industry.
He said: “Consolidation very rarely results in benefits for the Ssas members, especially where legacy books with exposure to distressed assets are concerned.
“There is a real challenge in slowing the attrition of Ssas schemes, upgrading technology and integrating very different cultures, processes and systems.
“More consolidation and continued growth is needed for the specialist Ssas providers who can deliver outstanding service, great value and digital technology. We are regularly turning down toxic Ssas books for sale.”
Elsewhere in the Ssas world, Bridgeman expects to see more Ssas takeovers next year as well as more businesses and partnerships joining the firm.
amy.austin@ft.com
