In an exclusive interview with Money Marketing, Misys banking and securities division chief executive Ivan Martin says:
Misys intends to float its IFA network businesses within two years, creating a self-contained entity comprising the five networks – Countrywide, DBS, Financial Options, IFA Network and Kestrel and the software arm.
Misys is known as a software business – we get discounted in the market for being a conglomerate so our vision is that Misys should concentrate on its core competencies as a software company and float the life and pensions business.
Our aim is to build value in the company over the next two years and then float the Misys IFA Services part of the company to crystallise some of that value.
Our plan to expand the business prior to flotation includes targeting bancassurers and others in the post-CP121 environment with technology solutions, end-to-end processing, compliance services, business monitoring and research capabilities.
We may move into offering our own wrap products and aggregation technology services. We won't go into manufacturing products but we might start packaging them.
After the FSA's review into depolarisation has concluded and we have a better idea of how the marketplace is likely to develop we will look at rationalising the networks and segmenting a number of the offerings. When the new rules are implemented, and we are offering IFA, multi-tie and white-label services we will look at what existing brands would be most appropriate to what sectors.
We believe that Misys is a well-recognised and trusted trademark in the business to business marketplace and in the short term we would want to capitalise on that. But the high profile the float will create will create the right time to launch a new name for the new company.
Our expansion project involves increasing the size of our distribution capability. We do not comment on acquisition rumours but we won't rule out acquiring new distribution channels. But our focus is more about creating new product offerings.
We have said in our statement that IFAs will share in the benefits of the flotation. They will see a commitment from us in terms of recruitment incentives, loyalty and retirement options. Member firms will get options on shares at the time of the floatation, although exactly how that will be worked out is yet to be determined.
Assureweb will remain contained inside the newly floated business. Assureweb is a self-contained business in its own right within Misys plc and has very little dependence on the group as a whole so will not suffer from being separated from Misys itself.