Andy Thompson, chief executive of Old Mutual Wealth’s Intrinsic, made the comments at an Old Mutual showcase event on 15 November, saying rapid growth has “put clear water between us and the pack”.
“We have grown rapidly since the Retail Distribution Review (RDR) … We have emerged from the pack to become St James’s Place’s (SJP’s) only credible scale competitor,” Thompson said.
Figures shown at the showcase reveal, as of June 2016, Old Mutual Wealth (OMW) had 1,803 advisers, while SJP has 3,328 advisers.
OMW’s next competitor Openwork trails with 829 while Tenet is behind them with 642 advisers.
Window of opportunity
Thompson said the rapid growth has been achieved by seizing the “window of opportunity” created by the RDR in 2014, which disrupted and stalled the business models of many of their competitors.
“Since 2014… we have increased the number of restricted advisers we have by 24% while the number of CF30s in broader market has remained flat,” Thompson said.
“The RDR disruption ended cross subsidisation, affecting many of our competitors’ business models. Some were acquired or merged and others ceased trading altogether. But our strategy enabled us to seize the opportunity.
“We have been able to increase the number of restricted financial planners both organically and through acquisition,” he said.
OMW acquisitions
Both Old Mutual Wealth and its network Intrinsic have completed a number of acquisitions in recent years to bolster its adviser numbers both in the UK and internationally.
In June this year Intrinsic completed its Caerus acquisition, which added 260 advisers to its network. This followed its acquisition of Sesame in early 2016 that added 205 advisers.
Additionally, in March 2016, Old Mutual Wealth acquired AAM Advisory in Singapore, which continues to operate as a separate entity to OMW’s existing businesses in the region, Old Mutual International and Old Mutual Global Investors.
SJP acquisitions
SJP has also made a number of notable acquisitions in recent years, including the Henley Group in 2014, which was the company’s first foray into an overseas market.
The Henley Group has offices in Hong Kong, Singapore and Shanghai.
Quilter
Old Mutual Wealth chief executive, Paul Feeney, also announced at the showcase that the company will be re-branding as Quilter, once the managed separation of Old Mutual is completed in 2018.
OMW acquired discretionary investment manager Quilter Cheviot in February 2015. That business will retain its full name, while the remainder of OWM will only use the Quilter branding after it lists in 2018.
The intention is to complete this listing as early as possible in 2018, subject to regulatory and other approvals, the company confirmed.
In addition to the rebrand, Quilter plc will be split into two division: Advice and Wealth Management and Wealth Platforms.
