View more on these topics

Old Mutual Wealth profits slashed by a third after legacy fee cut


Profits at Old Mutual Wealth have slid by over a third (31 per cent) to £104m in the first half of 2016.

The firm – which is undergoing major restructuring – says the drop in adjusted operating profit was driven by cutting fees on legacy products and lower operating margins.

In July the provider announced a 1 per cent cap on pension exit charges and cut fees on its heritage book.

The FCA is investigating Old Mutual Wealth – along with five other providers – over their treatment of long-standing customers in older products.

The interim results also show funds under management increased 7 per cent from the start of the year to £111.2bn.

Old Mutual also reveals figures that show restricted Intrinsic advisers are delivering 33 per cent of net flows into the platform and 26 per cent of flows to Old Mutual Global Investors.

In addition, non-executive directors Simon Davies, Jane Hanson and Andy Pomfret have decided to step down from the Old Mutual Wealth board in October 2016.

Chief executive Paul Feeney says: “This has been a challenging six months for Old Mutual Wealth, and the whole industry, with volatile markets dominating the first half of this year, indeed it was the worst period for net retail flows for the industry in 20 years. Against this backdrop, I am pleased with the resilient net client cash flow that the business delivered of £3.2 billion, up 39% on that of the prior year.

“We are focused on executing our strategy and delivering good outcomes for our customers. Continued investment to achieve our strategy and to build capability for the future as a standalone business has had an impact on our bottom line for the half year, but our underlying revenue growth remains robust.

“Our advice-led, vertically integrated strategy is delivering year on year growth in net flows, increasing our funds under management despite weaker markets. We are in a great position to build competitive advantage and deliver sustainable long-term growth in profits, cash generation and value.”



Old Mutual offloads Italian arm as break-up accelerates

Old Mutual is to sell its Italian wealth management business to ERGO Italia, owned by private equity firm Cinven, for £237m plus interest. Rothschild advised Old Mutual on the deal. Cinven has a stake in annuity specialist Partnership, which merged with Just Retirement earlier this year, and life book consolidator Guardian Financial Services In June, […]

Old Mutual acquires Yorkshire advice firm

Old Mutual Wealth Private Client Advisers has acquired West Yorkshire advice firm Beaumont Robinson, which has £250m assets under advice. Staff and management at Beaumont Robinson, which has more than 850 clients, will stay with the business. Managing director Michael Wall will take on the role of Old Mutual Wealth Private Client Advisers regional director. […]

Old Mutual Wealth 2014

Old Mutual Weath caps exit fees ahead of deadline

Old Mutual Wealth has moved to cap pension exit penalties ahead of the FCA’s March 2017 deadline. In May the regulator announced providers would have to cap exit penalties on pension policies at 1 per cent for customers attempting to use the pension freedoms. As recently as March the provider said it would apply a […]

The fifteen-year itch

By Neil Jones Technical support manager with Canada Life’s ican Technical Services Team. Canada Life offers a range of wealth management solutions, including retirement income planning, estate planning and investment solutions from a choice of jurisdictions, including the UK, Isle of Man and Republic of Ireland. The treatment of non-UK domiciles that are resident in […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm