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Old Mutual plans to retain Intrinsic mortgage arm

Old Mutual Wealth is to carry out a review of its ownership of Intrinsic’s mortgage arm but says it expects to keep the business.

In an interview with Money Marketing following the completion of the Intrinsic deal, Old Mutual Wealth chief executive Paul Feeney says the provider will review the network’s mortgage operation in 12 months’ time.

He says: “People need mortgage advice and the fact we don’t provide the underlying product doesn’t worry me.

“We’ll probably take 12 months and see. We know it’s an important part of the proposition and if you pressed me now I’d have to say we’d be keeping it.

“If our goal was to only provide our own services, [these mortgage adv-isers] would stand out. But if you’re trying to secure financial futures, getting good retirement deals and good mortgage deals all matters.”

Money Marketing first revealed Old Mutual planned to acquire Intrinsic last December. The deal was formally announced in February and gained regulatory approval in June.

The firm also plans to acquire the remaining stake in investment firm Cirilium, a joint venture between Henderson and Intrinsic, subject to regulatory approval.

On the Cirilium deal, Feeney says: “It would be easy to close it off and put WealthSelect in but I’ve bought it and hired the team that run it.”

He adds the firm has no plans to acquire more distribution but could consider it in the future. He says: “If we found something that was compelling and fitted our model, of course we would look at it.”

Feeney also says there are plans to continue recruiting advisers into the Intrinsic network.


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

  1. the elephant in the room 24th July 2014 at 2:35 pm

    Hmmm, does that mean Mortgage based AR’s with Intrinsic have 12 months to find a new home? If it doesn’t then it’s a very ill judged press release!

  2. James Lindon-Travers 24th July 2014 at 2:59 pm

    Indeed – it is a bit like the Chairman of the Football Club supporting the Manager just before he sacks him. Looks like all those ex-Openwork Intrinsic mortgage ARs will be heading back from whence they came!

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