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Skandia in talks with independent firms over stakes

Peter Mann
Skandia managing director UK Peter Mann

Skandia says it is not just looking to acquire stakes in restricted firms and is in discussions with a number of IFAs about taking a small stake.

Managing director of UK Peter Mann says IFA firms would not need to class themselves as restricted just because the provider owned a small stake.

Mann says: “Firms we could look to take a stake in would not necessarily have to be restricted. Some of the businesses we have spoken to already are not currently restricted.

“If we get the chance we will take small stakes in firms of between five and 10 per cent. That is as much as we are prepared to take.

“We do not want to own adviser businesses or have any influence.

“There are some businesses that have the ability to grow but are constrained by capital and if there is anything we can do to help without exerting undue influence then it is part of the business plan to do that.”

Mann declined to reveal the exact number of firms Skandia is in discussions with, but says the current number is fewer than 10.

In October, Money Marketing revealed Skandia was in talks with Keith Carby’s restricted venture Caerus Capital Group over taking a stake in the firm. Mann declined to comment on any potential deal.

Forty Two Wealth Management partner Alan Dick says: “I do not think this would have to affect a firm’s independence.

“It would clearly add a conflict of interest but every firm has conflicts of interest, the issue is whether they are identified and systems are put in place to manage them.”


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. RegulatorSaurusRex 31st January 2013 at 10:22 am

    A Skandia boss once described IFAs as “children”.

    Another one said they were happy to absorb the goodwill of IFAs who were gullible enough to introduce their clients to them.

    Now they want to use that equity to buy IFA equity?

    Perverse or what?

  2. Can anyone recall who acquired Bankhall in 2001 for a figure in excess of £100 million and sold it for a £1 less than 10 years later?

  3. Letter from Skandia to one of OUR CLIENTS this week.

    Thank you for advising us that you are considering taking benefits from your Personal Pension plan.

    We enclose the following

    1) A clear guide to your retirement options. Please make sure you read this and discuss your options with your Financial Adviser
    2) An annuity quotation showing the income available to you from an arrangement Skandia have with Legal & General
    3) Pension discharge form to be completed
    With regard to the annuity with L&G it goes on to say “if you decide to proceed with an L&G annuity through Skandia, please note the following important information”
    Skandia MultiFUNDS will act as an intermediary and will receive commission from L&G for arranging the annuity. The payment of this commission will not be made from your pension but will be paid by L&G. Your financial adviser will not receive commission from L&G in respect of this annuity.
    You will get the same level of income from an L&G annuity whether it is taken out through Skandia MultiFUNDS or your financial adviser.
    If your adviser recommends that you buy an annuity with L&G through the OMO they must approach them directly for illustrations that show them as being your adviser and the correct paperwork to have the annuity set up through their agency.

    At retirement Skandia are attacking my clients and whilst they can claim commission I have to agree adviser fees with my client. RDR working a treat!


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