Bankhall is now valued at just 25m after Skandia wrote down 82m following a writedown of 70m last December,The new move fuels industry speculation that Skandia is poised to sell the loss-making support service organisation. Skandia paid 145.8m for an 81 per cent stake in the business in 2002, valuing Bankhall at 180m, and claims this figure was justified because of the need to insure against uncertainty over depolarisation. It says the acquisition was the right strategic move because of the distribution links that it secured with the IFA community. Earlier this month, it bought 7 per cent stakes from former joint chief exec- utives Paul Hogarth and Simon Taylor. Norwich Union holds 5 per cent. Old Mutual is in talks to buy Skandia. Skandia is adamant that it has no plans to sell Bankhall. Bankhall made a loss of 1.3m in the first half of this year and its business model is being reviewed, which has been demonstrated by the closure of network ISL and streamlining its business operation toward a “more profitable business plan” under newly appointed chief executive Peter Mann. Skandia UK managing director Nick Poyntz-Wright says: “Put into context, the entire industry knew depolarisation was looming and we were all wondering what to expect, thinking IFAs would be forced to completely change their ways. People talk about overpaying or the benefits of hindsight but I maintain this was the right decision to take. We have benefited from the course taken, insulating ourselves against the changes follow- ing depolarisation.” Wilson Dean Financial Services director Nick Lincoln says: “The management changes and sale speculation have not affected me as a member at all. It is such a light-touch relationship with Bankhall.” Bankhall declined to comment on the matter.
With regard to the recent feature on domicile, I think the panel of experts omitted one fact. It is not possible to be domiciled “in the UK” for most international purposes – the country is the United Kingdom which comprises Great Britain and Northern Ireland. Great Britain comprises two different jurisdictions (England/Wales and Scotland), while […]
The AITC says quarter two investment trust Isa sales were down 10 per cent on last year from 21.7m to 19.6m. Global growth accounted for the highest proportion of Isa sales by sector followed by UK growth and income. The average investment by regular savers was 152 per month, while the average lump sum investment […]
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The era of loose monetary policy created an environment that rewarded passive investors in the US. However, with the US raising interest rates for the first time since 2006, Felix Wintle explains why he believes active investing will be more important than ever. In the video Felix discusses: The rising cost of capital and its […]
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