Punter Southall Aspire is withdrawing from the master trust market.
The firm currently runs the Aspire Savings Trust. Trustee will now begin the process of identifying a new master trust provider to transfer members and assets.
Punter Southall Aspire says it is instead focusing on a ‘strategic partnership’ with Evolve, which runs its own Crystal master trust. This will see Punter Southall Aspire provide retirement advice Evolve’s new and existing scheme members,
Punter Southall Aspire will also look to develop a packaged health, risk and pension product for the SME market using the Crystal Trust, which runs the pension for 1500 employers.
The partnership with Evolve was the result of Punter Southall Aspire’s recent strategic business review, which acknowledged the business landscape has changed and that opportunities to scale have reduced.
Punter Southall Aspire will now focus on growing its national retirement and financial planning business, working with employers and employees across the UK.
Punter Southall Aspire chief executive Steve Butler says: “There are many synergies between Punter Southall Aspire and Evolve. Our new strategic partnership will enable us to focus on our strengths: providing financial advice and consultancy to support members’ financial planning and helping them make the best financial retirement decisions.”
Evolve chief executive Paul Bannister adds: “We will be referring all our members to Punter Southall Aspire for ‘at retirement’ advice.
“In the current economic climate, we feel it is essential members can access financial guidance to help them navigate the complex range of pension options at their disposal and make the best financial decisions to support their retirements.”
Hymans Robertson senior consultant Sharon Bellingham says: “The master trust market has, in what seems like a blink of an eye, already reduced substantially with about two-thirds exiting from a pre-Authorisation starting position of over 90. Further consolidation has always been expected in the post Authorisation world and, with that in mind, today’s announcement that Punter Southall Aspire has decided to leave the market is not unexpected. Achieving scale is essential in today’s challenging market and it’s clear that some will struggle with commercials likely to be impacted by the recent and substantial falls that we’ve seen, as will the reduction of monies-in as furloughing bites and employers attempt to navigate their way through Covid-19.
“And thinking about the pace of consolidation, what’s clear is that it will be more vigorous than we anticipated a few months ago.”