Old Mutual Wealth vice-chairman Peter Mann told Money Marketing in October that Skandia had shelved plans to buy minority stakes in adviser firms but was open to buying a large adviser or building a distribution arm from scratch. Money Marketing revealed in October 2012 that Skandia was in talks to acquire a stake in Caerus Capital Group, though the plans were subsequently shelved.
OMW is understood to have already made one offer for Intrinsic, which acquired Positive Solutions earlier this year. Simon Davies, a non-executive director at Old Mutual and former Intrinsic director, is thought to be key to the proposed deal.
Old Mutual Wealth is refusing to confirm the talks and bid but says it is in discussions with a number of advice firms. Money Marketing understands the company has decided against acquiring Caerus outright, though a future bid for Sesame Bankhall Group has not been ruled out.
A spokesman for Old Mutual Wealth says: “We have been in discussions with a number of financial advice firms post-RDR about their strategy and future plans. No agreement has been concluded with any firm and we will not comment on the nature of those discussions or who they are with until such time.”
An Intrinsic spokesman says: “As one of the major financial adviser business in the UK Intrinsic holds regular discussions with a wide range of potential partners. We do not comment on the nature of those discussions.”
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.