Old Mutual Wealth  

Intrinsic splits into three 'channels' after strategic review

Intrinsic splits into three 'channels' after strategic review

Intrinsic will be split into three channels from next year after the network consulted with its advisers.

The network will remain as a single entity but from 2017 it will contain three separate channels.

These will be a wealth network for restricted and independent financial planners, a mortgage and protection network and a wealth national.

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A spokesman for Intrinsic said: “Each business will have its own managing director with full profit and loss responsibility, ensuring there is clear accountability and responsibility on the Intrinsic board for each of those business areas.

“They will be supported by Intrinsic’s central and shared services.

“This will allow us to focus and tailor our service and support for advisers and customers in each of the three channels.”

The wealth national – Old Mutual Wealth Private Client Advisers which was launched last year – will be led by Nigel Spiers while the Stephen Fryett will take charge of the wealth network.

A managing director for the mortgage and protection network has yet to be appointed.

The Intrinsic spokesman said: “Intrinsic has spent a lot of time consulting with advisers to understand how we can best support their businesses and their clients.”

The company is going ahead with the restructure following a strategic review which it carried out in the first half of 2015.

Yesterday Intrinsic posted a £13m loss for 2015 because of its “emphasis upon growth”.

Intrinsic’s parent company Old Mutual Wealth is going through the process of a demerger from the other arms of the Old Mutual business.

This will culminate with the company being listed on the London and Johannesburg stock exchanges by the end of 2018.

Old Mutual today issued an update on these plans, which it has said are "highly complex" and there is "no certainty" about their outcome.

Earlier this year Mr Feeney told FTAdviser that it would be "silly" to rule anything in or out with regards to Old Mutual Wealth's future, including its sale.

In a statement to the stock exchange, Old Mutual said: "The key determinant of the timing for the managed separation is the readiness of the businesses for independence. The process of preparing for independence is more significant for the unlisted businesses, Old Mutual Emerging Markets and OMW.

"This process for each of these businesses will include reviewing, inter alia, businesses and operating models, capital and governance structures and management.

"A future-ready wealth platform, which will improve the sales of new business and the retention of existing customer assets, remains very important for OMW's strategy. To simplify and de-risk the overall project and focus resources on the open book build, the building of the Heritage platform has been paused.

"In addition to the £225m spent to the end of June 2016, we estimate that the remainder of the revised programme will cost a further £200m to £225m to complete. This will mean the total cost to complete the re-platforming will be in the range of £425m to £450m, excluding any further spend on Heritage."