James Hay Wrap to be sold

The James Hay Wrap will be separated from the SIPP business and sold, following the acquisition of James Hay by IFG Group.

IFG received backing from its shareholders to purchase James Hay, which offers SIPPs and a wrap platform, last week.

The IPS Partnership, IFG's existing UK SIPP provider, says the firm intends to focus on its SIPP offering, and will offload the James Hay Wrap. The acquisition is expected to complete before the end of the first quarter.

At the end of December 2008, James Hay Wrap had around £0.7bn in assets under administration (AUM) from 2,800 clients. It is relatively small compared to other offerings such as Cofunds, which has around £22.7bn AUM.

In December 2009, IFG announced it had agreed to purchase James Hay from Santander in a £35m deal.

IFG's UK managing director, Tim Sargisson, says his firm hopes to give James Hay "the attention it deserves". He believes the firm was a low priority for Santander, but will form the bulk of IFG's UK operations.

All of IFG's UK SIPP business, including the IPS Partnership, will be rebranded as James Hay. It is not known whether the wrap will continue to use the James Hay name.