Curtis Banks wins SIPPs administration contract

(ShareCast News) - Curtis Banks has signed a contract to take on the administration of a significant book of self-invested personal pension schemes (SIPPs) from another third party administrator.The company said the contract is for a minimum 10-year period and it will receive an annual fee for each SIPP administered, subject to agreed minimum annual amounts.Curtis said the fees payable under the contract are front-end loaded over the first two years of the contract to reflect the initial workload of taking on the book of SIPPs during the contract term.The fees in each of the first two years amount to £1.25m with an additional initial payment of £750,000 during the first year of the contract to cover costs during the transition period.Curtis Banks said it expects to achieve its current profit margins through the administration of this book of SIPPs during the contract term.Chief executive officer Rupert Curtis said: "This transaction fits well with Curtis Banks' proven expansion strategy and enhances our position as the go to consolidator for financial services companies seeking a specialist SIPP administrator."At 1215 BST, Curtis Banks shares were up 7.7% to 293.50p.