The move, first tipped by Money Marketing in December, will see Intrinsic retain its brand and management team.
Skandia’s protection products will be added to Intrinsic’s panel for its mortgage and protection advisers and its platform will be added to Intrinsic’s platform panel.
Intrinsic’s Cirilium asset management offering, managed by Henderson, will continue to be part of its investment proposition with advisers also getting access to Old Mutual Wealth’s investment products. Intrinsic will continue to offer independent and restricted advice with Old Mutual Wealth likely to look to promote its new Wealth Select range through the restricted arm in the future.
Old Mutual Wealth chief executive Paul Feeney says: “Wealth management is not just for the wealthy. Most people need high quality individual advice to help them secure their financial future, to achieve their goals and look after their families. We believe passionately in this and want to improve access to wealth management services for people right across the UK.”
Intrinsic chief executive Richard Freeman says: “Ownership by Old Mutual Wealth will bring a host of benefits to our customers and to our business. It will deliver a first-class proposition with the investment platform, investment solution and advice relationship fully aligned in a way that provides real value for money.”
Intrinsic shareholders include Sanlam, Aegon and Friends Life. The firm acquired Positive Solutions from Aegon in June. The network posted a pre-tax profit of £5.2m for 2012, up 62 per cent from £3.2m in 2011. The network also set aside over £2m in relation to expected complaint settlements, compared to a provision of just over £1m in 2011.
By taking on Positive Solutions’ 850 advisers, Intrinsic increased its total adviser headcount to around 3,000.
The deal was revealed as Old Mutual announced its results for 2013. Old Mutual Global Investors saw profits of £15m for the year, a big increase on £2m the previous year. Platform assets reached £27.3bn by the end of 2013, after starting the year at £22.6bn, with net inflows of £2.4bn.