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Sanlam takes over 158-adviser network

Sanlam has acquired Tavistock’s financial advice network, Tavistock Financial.

The deal adds 158 advisers and 25 staff to Sanlam’s current 60 financial planners. It will also add £1.5 billion to Sanlam UK’s assets under advice.

The move is part of South African listed Sanlam’s bid to build a bigger advice presence in the UK by restructuring its business to house Sanlam Private Wealth and Sanlam Wealth Planning under a new division, Sanlam Partners, which will now take on Tavistock as well.

Sanlam UK chief executive Jonathan Polin says: “The initial response has been hugely positive and today’s acquisition allows us to accelerate this concept, putting us in a strong position to bring on-board the high quality adviser firms who would like to join us.”

The deal is reported to have cost Sanlam £1m. Tavistock Financial is the part of the business that houses advisers from the collapsed network Financial Limited after Tavistock acquired the business and moved advisers to its new network.

Money Marketing tipped several months ago that Tavistock had been asking £1.5m for the business, with 100 per cent of the consideration requested up front.

Tavistock chief executive Brian Raven says: “The Tavistock Financial business no longer fits with our strategy but, in disposing of the business, it was important to us that the interests of the staff and advisers were protected. Sanlam has convinced us that they are the right firm to take the business forward.”

Former Financial Limited boss Charlie Palmer had his FCA fine and ban upheld by an Upper Tribunal earlier this week.

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. “The initial response has been hugely positive” obviously not by the people that matter as there was no discussion or notice until an email sent at 17.04pm yesterday after most had gone home !
    How many of the 125 advisers will now go to other networks or directly authorised?

  2. £1m divided by 40 = £25,000 per member firm, which is basically a We’ll take ’em off your hands for a nominal sum deal.

    The liabilities (mainly, one presumes, in respect of unsuitable pension switches and UCIS sales) that Tavistock took on along with Financial’s roster of member firms must by now be starting to crystallise. I doubt if that deal can have been anything but a money-loser for Tavistock and they’re glad to have found someone else to take the whole thing off their hands.

    That’s not to say that Financial had no good advisers but, as always, it’s a few bad apples who, if not properly supervised, spread rot throughout the barrel.

    • They include the creation of Sanlam Partners, a new initiative to give “culturally aligned” financial planning firms the chance to use some of Sanlam’s proposition and processes to help them grow.These firms could then become part of Sanlam through a buy-out at a later stage.

      The above is why Tavistock Wealth bought Financial and it has now worked therefore it will be interesting to see how Sanlam make it work

  3. Well Gordon, that could depend on whether the parent company provides a better service to its own advisers than it does IFAs!
    We have just been quoted a 27 WORKING day turnaround time to update a client’s married name on her pension plan and return the marriage certificate!!!

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