Old Mutual Wealth says restricted advisers will not move to a single-tie model following the company’s acquisition of Intrinsic.
The deal to acquire the 3,000 Intrinsic adviser firms, first tipped by Money Marketing in December, will see Intrinsic retain its brand and management team.
Skandia’s protection products and the Skandia platform will be added to Intrinsic’s panels. 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 acquired national IFA Positive Solutions in June, adding 850 advisers.
Speaking at a press briefing last week, Intrinsic chief executive Richard Freeman said: “One of the things the PosSol advisers want to do is hold on to their brand. It is something we may look at in the coming years but at the moment we are about three quarters of the way through the integration of our PosSol advisers.”
Freeman said he had been nervous about announcing the deal to PosSol advisers as they had been provider-owned before, but said that feedback has been positive.
Freeman revealed Intrinsic has turned down approaches from providers looking to acquire the network. He said: “We have had discussions with providers in the past and some of them would have mandated single-tie.
“That would not have worked for our model.”
Old Mutual Wealth chief executive Paul Feeney said: “We never talked about single-tie. We need to make sure we have a great proposition not just for customers but for advisers.
“We will look at that proposition and if we believe there are areas where Old Mutual Wealth is much stronger than certain other players, we will not be meek and mild, we will say it.”
Feeney said developing an investment proposition was not about “one size fits all”.
He said: “Cirilium is first quartile over virtually every period over the last five years.
“We are not going to come in and kill it.
“We look at it from the customer’s point of view. If we can augment the proposition, then that is what we will do. We have got to take the advisers on a journey.
“We are going to look at the investment matrix. Are there opportunities to put Old Mutual products on it? Of course there will be.
“But we take the advisers and the clients and the regulator with us.”
Evolve Financial Planning director Jason Witcombe says: “The underlying advisers in the network will not have had any say in this acquisition. They have been moved from pillar to post and may find it easier just to leave.”