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Misys IFA flotation may bring in up to £700m

Misys will float its IFA business within two years and realign its five networks into separate divisions reflecting different distribution strat-egies once the outcome of the FSA&#39s review of polarisation is determined.

The flotation of the 7,500 adviser mega-network could raise up to £700m and would satisfy analysts who want Misys to concentrate on its core business as a software provider.

Misys will not say whether it will demerge or offer shares to the market direct. Demerger would see existing shareholders, including Legal & General, Aegon, Fidelity, Prudential subsidiary M&G and NU subsidiary Morley, first in line to take stakes

Misys&#39 investment banker Cazenove has valued the flotation at between £215m and £276m, based on the current regulatory structure but other City analysts say the IFA business could be worth between £400m-£700m after CP121.

Misys plans to launch a programme of incentives to retain members, including retirement buyout options and share offers on flotation.

Misys&#39 share price surged by 21 per cent from 181p to 210p following the announcement.

Misys chairman Kevin Lomax says: “The IFA business is a valuable entity. Misys&#39 shareholders will never get proper value while it stays in the company.”

Brewin Dolphin analyst Ian Macarthur says: “Misys advisers&#39 productivity is low. What would be interesting is if Misys had people going in there to raise the game – people who are more commercially aware. If they had a Keith Carby going in, it would be interesting.”

•Misys flotation, p2&9


NU makes emergency cuts

Norwich Union is devaluing all with-profits policies by 5 per cent and slashing bonuses in an emergency measure blamed on falling stockmarkets.The changes, which take effect from August 1, mean terminal bonuses will be cut by whatever amount necessary to meet the 5 per cent overall cut. Some terminal bonuses will be wiped out altogether. […]

Northern Rock cuts flexible and capped rates

Northern Rock is reducing rates on its flexible and fixed capped mortgage range for new applicants with effect from Friday July 26. Reductions range from 0.10 per cent to 0.40 per cent and at the same time as a customer applies for a new fixed or flexible capped product, Northern Rock will consider an unsecured […]


“Yes. Maybe there ought to be changes to the rules, bearing in mind what has gone on. There is perhaps too much investing in each others&#39 trusts.”Alastair Cameron, The Cameron Consultancy“Yes. I think the general public is not that aware of how investment trusts work and some people may take advantage.”Richard Peasley, Churchill Securities & […]

LloydsTSB set to enter sub-prime mortgages

LloydsTSB is poised to enter the sub-prime mortgage market and is recruiting senior managers and directors for the new division, according to industry sources.One industry source says the bank, which owns mainstream lender Cheltenham & Gloucester, is not considering acquisitions but has instead appointed a recruitment consultancy, Maloney Search, to recruit staff from potential rivals.Another […]

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Johnson Fleming set to host webinar on auditing auto-enrolment schemes

With 23 auto-enrolment compliance notices issued by the Pensions Regulator, and an evolving legislative landscape meaning previously compliant schemes may now be in breach of regulation, now is the time to think about auditing your auto-enrolment scheme. Johnson Fleming is hosting a webinar on 9 October at 11:00 on how to audit your scheme to ensure compliance, avoid breaches and fines and overcome data issues.


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