Praemium partners to acquire UK pension provider
Investment platform provider, Praemium, has entered into an agreement to acquire England-based self-invested personal pension (SIPP) provider, Wensley Mackay.
The $1.04 million (£600,000) deal in cash would be subject to satisfactory fulfilment of the conditions specified in the agreement, including approval by, UK regulatory, the Financial Conduct Authority.
The transaction was expected to be earnings accretive in the first year, Praemium said in a statement to the Australian Securities Exchange (ASX).
While Praemium currently ran its discretionary investment platform in the UK using the company's proprietary separately managed account (SMA) technology, the firm said two-thirds of UK's household wealth came from private pension savings, with over one million SIPP schemes.
Praemium would now have access to a new source of funds under administration (FUA) through its existing adviser relationships.
Praemium chief executive, Michael Ohanessian, said: "In the UK, platform providers have seen the retirement market open up following pension reforms introduced in April 2015 that de-mandated the use of annuity investments. Investors are exiting annuities and seeking other options for their retirement savings, with a major shift to pension schemes like SIPPs that offer a wide range of option".
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