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Dentons says FSA cap ad silence hurting Sipp acquisitions
by Michelle Abrego on Oct 15, 2012 at 10:54
Sipp providers are being held back from acquisitions and mergers due to the Financial Services Authority’s (FSA) silence on capital adequacy requirements, according to Dentons.
Martin Tilley (pictured), director of technical services at Dentons said that the firm was being held back from expanding through acquisition until the regulator clarified its cap ad plans.
‘The problem we have is that while we have the capital adequacy requirements as an unknown it’s difficult to assess the cost of any business you want to acquire,' he said. 'Until we know what those levels are there could be a greater cost to that [acquired] business than we currently know about.'
In November 2011 the FSA said it would significantly raise capital adequacy requirements from their current 'inadequate' levels. It is been expected to publish a consultation before the end of the year. Tilley said Sipp providers were looking for an indication of requirements from the regulator, even if they were not the finalised rules.
‘At least if we know what the FSA's potential requirements are going to be that puts us in a better position to consider a potential takeover target,’ he said.
Tilley said Dentons planned to concentrate on acquisitions in 2013.
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by Michelle Abrego on Mar 12, 2014 at 11:23