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Old Mutual Wealth eyes D2C launch following Skandia rebrand

Old Mutual Wealth is considering launching a direct-to-consumer proposition after the firm ditched the adviser-focused Skandia brand last month.

A number of large insurers, including Aegon, Aviva, Royal London and Standard Life, have announced plans to boost their D2C presence having previously relied heavily on intermediated business.

Speaking following the Skandia rebrand, Old Mutual Wealth global head of distribution Steven Levin says he expects the firm to pursue a direct offering in the future.

He says: “Historically, we’ve been focused on advisers. I think, in time, we will look at going direct-to-consumer. I think it’s a while away but we’re looking at building a multi-channel business and D2C is a key channel.” 

In the short-term, however, Levin says the company is developing ways to save advisers time and make their job easier. He cites Old Mutual’s decision to launch a discretionary portfolio management service for advisers as an example.

The service has had £350m of inflows since it launched in February.

“We have always been open architecture and that will continue to be the case,” Levin says. “But actually what advisers are increasingly looking for is a portfolio service that’s tailored to them.”

The Old Mutual Foundation multi-asset range, run by multi-manager head John Ventre and UK equities head Richard Buxton, among others, is a risk-profiled range that uses only in-house branded funds.

Levin says the company’s multi-asset funds are seeing increasing demand from advisers outsourcing their investment management.

“The days of old where you had IFAs going down the fund tables and picking a little of this and a little of that, trying to keep portfolios within the risk profile, they are gone,” he says.

Levin also suggests the level of competition in the platform market means firms must diversify their proposition or risk extinction.

“We’re more than just a platform now, which is good because I think you have to be more than a platform to survive. The margins are too low and there are too many in the market.”

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Incompetent Regulators 3rd October 2014 at 10:39 am

    So long as they don’t touch my clients!

  2. As I have been saying for some time – I was not happy at the prospect of the ditching of the Skandia name as I worried about the change of culture this may bring. Seems that I was right.

    This is exactly what I was hoping would NOT happen. They should learn from Aviva – you can’t run with the hare and hunt with the hounds. OMW is efficiently destroying the trust that Skandia built up over 20 years with advisers.

    As Incompetent Regulators said above – don’t touch my clients, butt one may wonder how many potential clients we will now loose?

    I find it sad that for many years I had no real cause to moan about Skandia. Now with Old Meddlers I have had too many instances to moan.

  3. In case Old Mutual did not know the meaning of the word – An intermediary (or go-between) is a third party that offers intermediation services between two trading parties. The intermediary acts as a conduit for goods or services offered by a supplier to a consumer.

    It would seem that Old Mutual are already recruiting candidates, but via adviser clients! Old Mutual have mailed my clients inviting them to log on with direct access to the website. Lets make this clear these are “MY” clients introduced to Old mutual and OM must be made aware that this is alienating advisers who can vote with their feet!

  4. It was and is part of the bigger picture, of getting rid of those pesky IFA s, who have one % of FOS complaints against them, AND FOR THE INSTITUTIONS to steal our trail FEES.

  5. A number of years ago, I agreed with a pension client to take reduced initial commission and reduced trail commission on a plan we established with Skandia.

    Having reviewed the charges earlier this year, the following was confirmed…
    On these particular Skandia pension plans, they charge a plan AMC of 0.75%. This included the 0.5% trail commission.
    I was however shocked to find the following…
    If 0% trail was taken, the Skandia plan AMC was still 0.75%!

    I guess that back in the day, I did not complete my due diligence effectively enough.

  6. Having reviewed the charges earlier this year, the following was confirmed…
    On these particular Skandia pension plans, they charge a plan AMC of 0.75%. This included the 0.5% trail commission.
    I was however shocked to find the following…
    If 0% trail was taken, the Skandia plan AMC was still 0.75%!

    I guess that back in the day, I did not complete my due diligence effectively enough.

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