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Intrinsic offers loans for member-to-member buyouts

Intrinsic offers loans for member-to-member buyouts

Financial adviser network Intrinsic, part of Old Mutual Wealth, has launched a practice buyout scheme for advisers within the network that will see it offer loans for member-to-member takeovers.

Appointed representatives of Intrinsic that are seeking to sell their businesses will be able to connect with other members seeking acquisitive expansion, funded by loans bankrolled by Intrinsic parent Old Mutual Wealth and offered at “preferential rates”.

The offer is open to both independent and restricted appointed representatives. Buyers must have been appointed representatives for at least three continuous years, whilst sellers must have been part of Intrinsic or Positive Solutions for at least five years.

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The offer is reminiscent of a scheme offered by Standard Life, which confirmed last year it was providing commercial financing to advisory firms to support them in growth initiatives, including through acquisitions.

Standard Life on Friday announced it was seeking to following Old Mutual in gaining a more direcrt foothold in advice distribution, buying Pearson Jones from Skipton Building Society as part of a plan to roll out a national advice business.

Richard Freeman, Intrinsic’s chief executive, said the scheme demonstrates the value of us being part of the wider group.

“The practice buyout initiative will allow owners of successful financial planning firms to sell their business while crucially ensuring their clients continue to receive a high quality of service from an adviser within the Intrinsic network.”

Andy Thompson, distribution director at Intrinsic, said: “Our practice buyout scheme represents an opportunity to agree a sale with another member of the Intrinsic network that is looking to grow their business through acquisition.

“Customers will benefit from the continuity and certainty of remaining with a trusted professional adviser operating under the same FCA-authorised network.”

ruth.gillbe@ft.com