View more on these topics

AJ Bell and L&G abandon Cofunds deal

Boardroom-Business-Chair-Executive-Corporate-700x450.jpg

AJ Bell will not acquire Cofunds after the firm failed to reach a deal with the platform’s parent company Legal & General, Money Marketing understands.

Last week, Money Marketing revealed AJ Bell and L&G were in exclusive talks over a possible acquisition.

However, a source close to the deal says the two parties have now decided not to press ahead after a four-week exclusivity period ended without agreement being reached.

The source says: “The exclusivity period has come to an end and the deal is not going to happen. It was a mutual decision, both parties just felt now is not the right time for a transaction to take place.”

AJ Bell, Cofunds and L&G declined to comment.

L&G purchased the remaining 75 per cent of Cofunds it did not already own for £131m in March 2013. The insurer took the initial 25 per cent stake in the platform in 2005.

In July, Money Marketing revealed the insurer’s decision to sell Cofunds was sparked by a move to replatform its technology to Bravura.

Cofunds is currently powered by IFDS and has been considering its options ahead of IFDS’ contract ending in 2017. It is understood Bravura’s new Sonata system had been selected to replace IFDS, but the costs associated with the move prompted L&G to begin the sale process.

The project to replatform Cofunds to Bravura is expected to cost tens of millions of pounds.

Recommended

11

Can robots really take over from face-to-face advisers?

The robo-advice market looks set to explode in the UK, with investment giant BlackRock and Hargreaves Lansdown among the firms developing low-cost offerings to plug the post-RDR advice gap. However, it remains unclear exactly how the growing market for technology-driven solutions will interact with traditional face-to-face advice. Will robo-advice complement advisers’ existing propositions, or does […]

Poyntz-Wright-Nick-FCA-2013 500 x 320.jpg

FCA director Nick Poyntz-Wright exits

FCA director of long-term savings and pensions Nick Poyntz-Wright has left the regulator, Money Marketing can reveal. As part of his remit, Poyntz-Wright oversaw the supervision of financial advisers. This has now been passed to Linda Woodall, who the FCA announced earlier today has been appointed director of life insurance and advice. An FCA spokeswoman […]

Dubai

White paper — Dubai International Insights

Jelf Employee Benefits discusses the legislative changes in Dubai, available medical facilities and policy considerations for employers with expatriate workforces in the country. This edition will be of particular interest to global human resource directors, compensation and benefits specialists and mobility managers who have employee populations in Dubai, or are considering operating there in the near future.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Phew – I consider that good news. Now let’s hope for a management buyout.

    • I suspect the figures just didn’t add up for either party, but that is where L&G are going to struggle to find anyone willing to pay to acquire Cofunds when you look at the typical real cost of re-platforming to new technology, and the level of net profit Cofunds are generating. The AUM I’m sure would be nice for many a provider, certainly those who are aiming for vertical integration and can then push their investment funds as well, but only really tells a part of the story.

      Very interested to see where it goes from here!

Leave a comment