View more on these topics

Zurich to sell 25 per cent Openwork stake

Zurich-Building-700x450.jpg

Zurich will sell its 25 per cent stake in advice network Openwork in the next four years.

In July last year Money Marketing revealed Zurich had appointed investment banking advisory firm Evercore to explore exit opportunities as senior management look to rid the company of any liability risk associated with the business.

Openwork is currently 67.5 per cent owned by member firms and 7.5 per cent by an Openwork employees trust, with the remainder held by Zurich.

In a statement issued today, Openwork confirms Zurich will divest its shareholding to member firms between now and 2020. The network represents around 600 firms and 3,000 advisers.

Openwork chief executive Mark Duckworth says: “This agreement marks a major point in Openwork’s development. Advisers can see a clear path, collectively, to owning the network that provides the vital infrastructure behind their own businesses, a benefit which will be available in due course both to existing and new firms that join us.

“The agreement also demonstrates that Openwork has a clear ability to grow and create value, and we look forward to continuing to work closely with Zurich which has long been an integral part of our proposition.”

Zurich UK Life managing director for retail David White adds: “Today’s announcement is the culmination of the strategy set out when Openwork was created in 2005 and reflects the huge strides Openwork has made in recent years to become and remain profitable.

“The bonds between the two businesses remain very strong and, while Zurich will no longer be a shareholder as a result of this agreement, we will continue to provide our market-leading platform and protection propositions to Openwork’s advisers and their clients.”

Recommended

2

Do investors really want Osborne’s flexible Isa?

Current rules state if an investor decides to make a withdrawal from their Isa, this has no impact on their overall allowance. If they wish to replace the money, it will count as a new, further subscription, which will eat into any allowance they have remaining. From next tax year, Isa managers will be able to […]

Pension-pot-700.jpg
2

IFS: Pensions best investment but flat rate tax relief will undermine saving

The impact of automatic enrolment means pensions remain the most tax-efficient major form of saving, the Institute of Fiscal Studies says. In a report comparing the impact of recent tax changes and charges, matching employer contributions make saving through pensions “much more attractive than almost any other option with the same underlying return”. But it […]

Tony Wickenden: A new dawn for making tax digital

In this week’s instalment considering the draft clauses from the Finance Bill 2016 most relevant to financial planners I am going to turn my attention to stamp duty and tax administration. As in previous articles in this series, I will break down my consideration into the headings used in the HM Revenue & Customs overview of the […]

Mark-Dampier-700x450.jpg

Hargreaves’ Mark Dampier joins Invesco but denies conflict of interest

Hargreaves Lansdown’s Mark Dampier says his new board position on the £195m Invesco Income Growth Trust should not present a conflict of interest “in practice”. The head of investment research will take up his non-executive director role for the investment trust from 1 March. He says he is looking forward to raising the profile of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment