Rupert Curtis, who helped set up Curtis Banks in 2009, said the old cottage industry nature of Sipps is no longer attractive.

There has been much discussion about further consolidation as providers get ready to meet the new capital adequacy requirements in September.

Mr Curtis told Financial Planning Today he was sure this would continue and there was “some way to go yet”.

He said: “The sector will evolve towards a smaller number of well-run, financially strong operators. I think that’s what the FCA are looking for, and increasingly advisers are looking for it as well, the old cottage industry nature of Sipps is losing its appeal."

Asked what he believes will be the most difficult aspects of meeting the requirements from both the point of view of providers and the FCA, he said: “Possibly the same issue on both sides, there will be some providers which do not have the financial resources to meet the new requirements, but are not in a fit state to be sold or capable of raising more capital.”

He would have liked to have seen some amendments to the final rules, he explained, saying: “The rules should have taken into account the number of plans, not just assets under administration.

“But that battle looks to have been fought and lost, so we need to accept the rules as they stand and get on with it.”

Mr Curtis said he would like to see the FCA “continue the good work they have done to clean up the Sipp industry and improve standards”.

He added: “A lot of progress has been made, but we are still surprised by what some Sipp operators seem prepared to accept.”