Fidelity Worldwide Investment is acquiring the Isle of Whight-based annuities specialist and IFA, Annuity Direct, as well as its holding company Retirement Angels for an undisclosed sum.

With the deal, Fidelity aims to meet increasing demands for support for clients facing retirement and the decisions that follow, the firm said in a statement.

Annuity Direct, which will retain its status as an independent financial advisor, currently provides services both directly to individuals as well as via a range of intermediaries. In addition, Fidelity will broaden Annuity Direct’s services to a range of intermediaries and trustee clients.

“In acquiring Annuity Direct, Fidelity is underlining the importance of choice and guidance in the retirement market. There are significant numbers of individuals who will reach retirement age over the next few years, which requires the industry to support a more diverse set of customer needs and lifestyles,” said Richard Parkin, the newly appointed head of retirement at Fidelity Worldwide Investment.

“This service will allow us to provide broad based support for customers both approaching and in retirement. Additionally we will look to make a broad range of services available to support financial advisers, to help improve the options provided at retirement,” added Parkin.

Following the deal, Alan Higham will remain as chairman of Annuity Direct and will join Fidelity to help develop its foray into the retirement market, while Don Grant will become head of Annuity Direct.

The acquisition is subject to Financial Conduct Authority approval.