TWO pension schemes, affecting hundreds of UK investors, are being wound up by a North-East wealth management company and the individual plans sold to another provider.

Wealth management company Pearson Jones plc in Bishop Auckland in County Durham is winding up its Self Invest Personal Pension Schemes (SIPPS) and selling the individuals plans which the firm says will give a better deal to its clients.

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

Pearson Jones Plc, which launched its SIPP schemes in 2004, will maintain its central role as financial adviser to all of the schemes and all its staff involved in their administration are being deployed elsewhere in the business as its national wealth management portfolio continues to expand.

The winding up of the schemes and subsequent sales follow recent UK regulatory changes which have significantly increased the cost of administering pensions schemes – an ancillary area for Pearson Jones - triggering other small UK SIPP providers to wind up their schemes and sell on the administration. 

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 deputy managing director, Peter Heckingbottom, 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.” 

Mr Heckingbottom said that Pearson Jones had worked hard and is committed to ensuring that none of its clients are disadvantaged by the business transfers and that they will continue to benefit from top-class wealth management advice. 

He added: “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.”  

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.”